BEIJING (Reuters) – China will use timely cuts in banks’ reserve requirement ratios (RRR) and other policy tools to support the economy, state media quoted the cabinet as saying on Wednesday, as headwinds increase amid outbreaks of COVID-19.
China will step up financial support for the real economy, especially industries and small firms hit by the COVID-19 pandemic, and will lower financing costs, state media quoted the cabinet, or State Council, as saying after a regular meeting.
“In light of of changes in the current situation, we will encourage large banks with higher provisions to lower provision ratios in an orderly manner and will use monetary policy tools, including RRR cuts, in a timely way,” it was quoted as saying.
Authorities will also take measures to boost consumption, barring localities from imposing new restrictions on vehicle purchases, and will step up export tax rebates to stabilise foreign trade, the cabinet said.
(Reporting by Kevin Yao and Beijing newsroom; Editing by Gareth Jones)
