Pan Gongsheng, Governor of the People's Bank of China: It is expected to further reduce the reserve requirement ratio by 0.25-0.5 percentage points before the end of the year based on market liquidity conditions

Pan Gongsheng, the Governor of the People's Bank of China, announced at the 2024 Financial Street Forum Annual Meeting that the reserve requirement ratio has been lowered by 0.5 percentage points. It is expected that by the end of the year, depending on market liquidity conditions, there will be a further reduction of 0.25-0.5 percentage points. At the same time, the 7-day reverse repurchase operation rate in the open market has been lowered by 0.2 percentage points, and the medium-term lending facility rate has been lowered by 0.3 percentage points. Commercial banks have already announced a reduction in deposit rates, and it is expected that the loan market quoted interest rates will also decrease by 0.2-0.25 percentage points