China Daily seems pretty fired up, September 14:
PBOC announces second reduction of RRR this year
The People's Bank of China, the country's central bank, announced a cut to the reserve requirement ratio on Thursday, delivering a clear signal that policymakers are ramping up policy support for the country's economic recovery.
The PBOC will reduce the RRR, which refers to the proportion of money that lenders must keep as reserves, by 0.25 percentage points, effective on Friday, the central bank said in a statement. The move marks the second RRR cut so far this year.
Aimed at consolidating the foundation of economic recovery and keeping market liquidity reasonably ample, the cut will bring financial institutions' weighted average RRR to about 7.4 percent, according to the central bank.
Experts said the move will release medium to long-term liquidity of more than 500 billion yuan ($68.7 billion), tamp down banks' funding costs and provide more scope for declines in interest rates and financing costs....
And a, perhaps, more sober framing from Xinhua, September 14:
China Focus: China announces reserve requirement ratio cut to consolidate economic recovery
China's central bank on Thursday said it will cut the financial-institution reserve requirement ratio (RRR) by 0.25 percentage points from Sept. 15 to consolidate the foundation for economic recovery and keep liquidity reasonably ample.
China's economy is experiencing sustained recovery, with internal forces powering economic growth continuing to strengthen and social expectations continuing to improve, according to a People's Bank of China official.
The reduction is the second RRR cut this year, and it is expected to release over 500 billion yuan (about 69.56 billion U.S. dollars) in medium and long-term liquidity, the official said.
Including the RRR cut in March, reductions this year total 0.5 percentage points and could release over a trillion yuan in medium and long-term liquidity, the official added.
Wen Bin, chief economist of China Minsheng Bank, said that China still faces insufficient internal economic vitality and inadequate demand. He noted that lowering the RRR can guide financial institutions to increase their support for the real economy and boost market confidence in an improved manner.
As approximately 2.8 trillion yuan of medium-term lending facility (MLF) loans are maturing from August to December, Wen said that cutting the RRR is necessary to ensure reasonable liquidity in the market, lower the liability costs for financial institutions, and replace the maturing MLF loans....
....MUCH MORE
