China eases monetary policy

Monday, 20 February 2012 00:00 - - {{hitsCtrl.values.hits}}

SHANGHAI: China cut the amount of cash that banks must set aside as reserves for the second time in three months to spur lending as Europe’s debt crisis and a cooling property market threaten economic growth.

Reserve requirements will fall by 50 basis points to 20.5% effective Feb. 24 the People’s Bank of China said on its website. Premier Wen Jiabao aims to steer the world’s second-biggest economy through a property market slowdown and the weakest export growth since 2009. The International Monetary Fund said earlier that China’s growth may be cut almost in half if Europe’s debt crisis worsens.

The commerce ministry last week called the trade outlook “grim.”