The People’s Bank of China (PBOC) has announced a 0.5% reduction in the reserve requirement ratio (RRR). This action is expected to inject around $178.2 billion into the Chinese economy, aiming to stimulate growth amidst ongoing trade tensions with the U.S. The move follows two previous 50 basis point reductions for all banks in February and September of last year, which have been credited as a key factor in recent economic improvements. The PBOC’s actions signal their commitment to supporting financial institutions and providing liquidity to businesses. In addition to the RRR cut, the PBOC has also made adjustments to its lending rates, including a reduction to 1.4% for commercial bank deposits held with the central bank.