China's Central Bank Implements Surprise Reserve Ratio Cut to Aid Economic Recovery.

China's central bank has announced a cut in the amount of cash that banks must hold as reserves for the first time this year to help keep liquidity ample and support a nascent economic recovery. The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from March 27. The move, which came earlier than financial markets had anticipated, follows data showing a gradual but uneven recovery in the economy in the first two months of the year and a stronger-than-expected credit expansion.