HONG KONG — China’s central bank announced on Wednesday evening that it had reduced the share of assets that commercial banks must hold as reserves, freeing them to lend more and providing a potential stimulus to economic growth.
The People’s Bank of China joined an ever-lengthening list of central banks that have eased monetary policy as falling oil prices have reduced the risk of inflation while weak global demand has led to slower economic growth.
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The days leading up to Lunar New Year celebrations are often characterized by heavy spending on parties and gifts, and the central bank commonly injects extra money into the financial system to accommodate this — although it usually chooses less drastic measures to do so, such as short-term loans to commercial banks.
