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China frees up $126 billion for lending with reserve-ratio cut

September 6, 2019

BEIJING—China’s central bank will unleash roughly 900 billion yuan ($126 billion) into the financial system, in an effort to boost lending as the world’s second-largest economy faces increasing pressure from a trade war with the U.S.

The People’s Bank of China said Friday that it plans to reduce the amount of reserves that commercial banks are required to keep with the central bank by half a percentage point, starting September 16, in a bid to spur lending and economic activity.

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