[HIGHLIGHTS] (Economic Observer) China’s central bank cuts reserve requirement ratio for the first time this year to support a “good start” for the economy in the first quarter

Starting from the 5th, the Central Bank of China will lower the deposit reserve ratio of financial institutions by 0.5 percentage points. The value is about 1 trillion yuan (RMB, the same below) In the short term, this RRR cut will help stabilize capital operations during the Spring Festival and support a "good start" for the economy in the first quarter.

The central bank's choice to cut the reserve requirement ratio at the beginning of the year reflects that monetary policy continues to make counter-cyclical adjustments.