China’s central bank, the People's Bank of China (PBoC), has slashed the reserve requirement ratio by 50 basis points, bringing it to an average of 6.6%. This immediate move comes alongside a cut in the seven-day reverse repo rate by 20 basis points to 1.5%, a crucial rate used to set the country’s benchmark interest rates.
At the same time, industrial profits continue to decline, with August figures showing a 17.8% drop compared to the previous year. This follows a modest gain of 4.1% in July, signaling deeper economic challenges and pushing Beijing toward further stimulus measures.