China cuts banks' reserve ratio for second time in 2023 amid faltering recovery

According to Reuters, China's central bank announced on Thursday that it would cut the amount of cash that banks have to hold as reserves for the second time this year to boost liquidity and support the nation's economic recovery. 

On Friday, the People's Bank of China (PBOC) said that it would cut the reserve requirement ratio (RRR) by 25 basis points (bps) for all institutions except those that have implemented a 5% reserve ratio. This follows a 25 bps cut for all banks in March and it comes as the world's second-largest economy struggles to maintain its post-pandemic recovery.