China RRR cut lifts markets but weak PMI point to more pain ahead
Posted on March 1, 2016 at 11:05 am GMTChina’s central bank surprised markets on Monday by cutting the reserve requirement ratio (RRR) for large banks by 50 bps to 17%. The move is the first monetary easing by the People’s Bank of China (PBOC) since October 2015 and the fifth cut to the RRR in the past year. The RRR is the proportion of cash that banks must hold as reserves and the latest reduction should boost liquidity in the economy by around $100 billion. The cut, which [..]