Follow – conscious
Today, Friday, China reduced the mandatory reserve rate imposed on banks to maintain, in a move that would allow the injection of about $142.6 billion of liquidity into the financial markets..
The mandatory reserve rate is a percentage of deposits that banks do not have the right to dispose of but rather keep with the central bank..
This reduction, which the Chinese Central Bank announced on Tuesday its intention to resort to, comes the day after a meeting held by Chinese leaders, during which they admitted the existence of new “problems” in the country’s economy..
On Tuesday, the head of the Chinese Central Bank announced that Beijing will take measures to stimulate the economy, most notably reducing the mandatory reserve and reducing the main interest rate and the interest rate on real estate loans..
The Chinese authorities still expect growth of 5% this year, but analysts consider this goal very optimistic given the many obstacles facing the economy..
The country is suffering in particular from a crisis in the real estate sector, high unemployment rates among youth, and a slowdown in household consumption.
Source: Agence France-Presse