China's central bank cuts reserve ratio

People's Bank of China acts to boost bank lending and combat slowing economic growth in world's second-biggest economy

China's central bank has cut the amount of cash that banks must hold as reserves on Sunday, the second industry-wide cut in two months, adding more liquidity to the world's second-biggest economy to help spur bank lending and combat slowing growth.

The People's Bank of China lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5%, effective from Monday, the central bank said in a statement on its website.