To implement the guidelines of the Central Economic Work Conference and the arrangements outlined in the Government Work Report, to adopt a moderately accommodative monetary policy, and to make macro regulation more forward-looking, targeted, and effective, the People’s Bank of China (PBOC) has decided to cut the required reserve ratio (RRR) for financial institutions by 0.5 percentage points, which will be effective from May 15, 2025 (excluding the financial institutions that are already subject to an RRR of 5 percent). Besides, the RRR for auto finance companies and financial leasing companies will be cut by 5 percentage points.