China Cuts Bank Reserve Requirements

The PBOC cut banks' reserve requirement ratio by 50 bps (basis points) to 19.5%, the first such cut in nearly three years. This move follow's the PBOC's rate cut three months ago.

The Nattering One muses... Each 50bps cut releases $100 billion of reserves into their banking system. As mentioned here, only China has the luxury of being able to sterilize the effects of defaulting NFC (non financial corporations) eurodollar loans by cutting their reserve requirements.