The People's Bank of China today announced that reserve requirements for banks will be cut by 50 basis points, with this reduction to take effect early next month. This rate was last cut in September 2023. This measure is expected to add around $139 billion of liquidity into the banking system ahead of upcoming lunar new year holidays. Recent data have indicated that weakness in the property market continues to weigh on economic recovery. More policy announcements may take place at the annual meetings of the National People's Congress in early March.

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