China cbank injects funds, second phase of RRR cut takes effect

Credit: REUTERS/JASON LEE

China's central bank said on Monday the second phase of a cut in the reserve requirement ratio (RRR) freed about 100 billion yuan ($14.44 billion) worth of long term funds.

SHANGHAI, June 17 (Reuters) - China's central bank said on Monday the second phase of a cut in the reserve requirement ratio (RRR) freed about 100 billion yuan ($14.44 billion) worth of long term funds.

In open market operations, the People's Bank of China (PBOC) also injected 150 billion yuan via 14-day reverse repos to "keep liquidity level stable at end-June", the bank said in a statement on its website. CN/MMT

The PBOC announced in May that it would implement a reduction of RRRs for some small- and medium-sized banks in three phases, as part of wider efforts to help companies weather a slowdown in the world's second largest economy.

The third phase of the RRR cut is scheduled to take effect on July 15.

($1 = 6.9232 Chinese yuan)

(Reporting by Winni Zhou and David Stanway; editing by Darren Schuettler)

((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters Messaging: winni.zhou.thomsonreuters.com@reuters.net))

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