China will cut reserve ratios in timely way -state media quotes premier

BEIJING : China will cut banks' reserve requirement ratios (RRR) in a timely way to help safeguard economic stability, state media on Friday quoted Premier Li Keqiang as saying.

China will implement steady economic polices and make the policies more targeted and effective, Li was quoted as saying during a meeting with International Monetary Fund chief Kristalina Georgieva via video link.

China will maintain its prudent monetary policy and keep liquidity reasonably ample, Li said.

China will "cut reserve requirement ratios in a timely way to step up support for the real economy, especially small and micro firms, to ensure stable and healthy economic operations," Li said.

Following a broad-based cut to reserve ratios - the amount of cash that banks must hold as reserves - in July, the central bank has since defied market expectations for further policy easing.

China's economy faces multiple headwinds heading into 2022, due to a property downturn and strict COVID-19 curbs that have impeded consumption.

The economy, which staged an impressive rebound from last year's pandemic slump, has lost momentum in recent months as it grapples with slowing manufacturing, massive property market debt and new COVID-19 outbreaks.