China will use policy tools, including RRR cuts, to support economy

China will use policy tools, including reserve requirement ratio (RRR) cuts – the amount of cash banks must hold in reserves – in a timely way, to support the real economy, especially those industries and small companies badly hit by the pandemic, according to a regular cabinet meeting held on Wednesday.

The State Council meeting decided to take measures to boost consumption, including the consumption of consumer durables such as cars and home appliances. Therefore, local governments are forbidden to launch new limits on vehicle purchase.

China will also step up export tax rebates to stabilize foreign trade, said the meeting.

(CGTN)