Adhering to its accommodative monetary policy stance, the People’s Bank of China (PBOC) is set to intensify monetary policy adjustments with higher precision, so as to foster a favorable monetary and financial environment for the stable growth and high-quality development of the Chinese economy. The PBOC decides to cut the required reserve ratio (RRR) for financial institutions by 0.5 percentage points (excluding those that are already subject to an RRR of 5 percent), which will be effective from September 27, 2024. The weighted average RRR for financial institutions will be about 6.6 percent after the cut.