Photo: IC

China's central bank announced Friday to cut the reserve requirement ratio (RRR) for financial institutions by 50 basis points from Sept. 16 in the latest effort to bolster the economy.

Besides, an additional 100 basis points reduction in the RRR for city commercial banks operating only in provincial administrative areas will be implemented in two phases, Oct. 15 and Nov. 15, cutting 50 basis points in each phase. The move aims to promote support for small and private enterprises.

The People's Bank of China stressed it will continue to implement the prudent monetary policy and will not engage in a deluge of strong stimulus policies, in order to create a suitable monetary and financial environment for high-quality development and supply-side structural reform.