China's central bank attempts to boost economy with cash injection

The People's Bank of China has loosened rules on banks' cash reserves for the fifth time in a year in the hope cheaper loans will be made available

China's central bank has stepped up action to bolster its cooling economy by loosening the rules on banks' cash reserves in the hope that they will offer cheaper loans.

By cutting the reserve requirement ratio (RRR) - the amount of cash that banks must hold as reserves - the People's Bank of China has in effect injected $100bn (72bn) of long-term cash into the economy, experts said.

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