China’s central bank (PBoC) lowered its reserve requirement ratio (RRR) by 25 bps, effective September 15, to maintain liquidity and aid post-pandemic recovery. After the reduction, the RRR for large banks will stand at 10.5%, and the weighted average RRR for financial institutions will be at 7.4%. This move comes amid a call from investors for additional policy support due to data pointing to an economic slowdown. PBoC also reiterated its commitment to maintaining the yuan’s exchange rate stability.