China to cut reserve requirement ratio for fourth time

China's central bank announced Sunday it would reduce the reserve requirement ratio (RRR) for most banks by one percentage point, the fourth time this year the country has sought to free up credit for businesses as they face down $250 billion in US tariffs.

The move to cut the amount of cash which most commercial and foreign banks must hold in reserve, to repay loans obtained via the central bank's medium-term lending facility, will take effect on October 15.

The decision is intended to "further encourage the stable development of the real economy, optimise the liquidity structure of commercial banks and financial markets, lower financing costs, and to continue increasing the financial systems' efforts to support small businesses, private enterprise and innovation," the People's Bank of China said in a statement.