China's central bank said on Friday it was cutting the amount of cash that banks must hold as reserves for the third time this year, releasing 900 billion yuan ($126.35 billion) in liquidity to shore up the flagging economy.
Analysts had expected China to announce more policy-easing measures soon as the world's second-largest economy comes under growing pressure from escalating U.S. tariffs and sluggish domestic demand.
The People's Bank of China said it would cut the reserve requirement ratio by 50 basis points (bps) for all banks, with an additional 100 bps cut for qualified city commercial banks. The RRR for large banks will be lowered to 13.0 percent.