BEIJING—China’s central bank gave a green light to banks to dig into reserves to lend more, signaling government worries about slowing momentum for economic growth amid rising trade tensions with the U.S.
For the first time in two years, the People’s Bank of China announced a reduction in the portion of deposits commercial banks are required to hold in reserve. The cut at 1 percentage point is broader than most previous such moves and, when it takes effect April 25, will unleash about $200 billion in funds.
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