China will step up monetary easing and keep liquidity “reasonably ample”, the state cabinet said in a meeting chaired by premier Li Keqiang on Wednesday, as it looks to support the economy and help small and medium-sized firms, APA reports citing Reuters.
The cabinet indicated that the government will keep liquidity ample by cutting the required reserved ratio (RRR) - the amount of cash banks are required to hold - and re-lending, while guiding market interest rates lower, the state broadcaster CCTV reported.
The government will ensure that China’s issuance of new yuan-denominated loans and total social financing in 2020 exceed last year’s total, the report added.
China will also push financial institutions to sacrifice 1.5 trillion yuan ($212 billion) in profit this year to support companies of all kinds by lowering lending rates and fees, and deferring loan payments, according to the report.
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