Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Asian Technology and Chipmaking Stocks Slide as AI Spending Concerns Shake Markets 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
China’s central bank has announced its first reserve requirement ratio (RRR) cut of 2025 to bolster the economy amid intensifying trade tensions with the United States. People's Bank of China (PBOC) Governor Pan Gongsheng said Wednesday the RRR will be lowered by 50 basis points, a move expected to inject approximately 1 trillion yuan ($138 billion) in liquidity into the financial system.
The decision comes as China faces mounting economic pressure following U.S. President Donald Trump’s latest round of aggressive tariffs on Chinese goods, some reportedly reaching triple digits. In response, Beijing is stepping up monetary support to stabilize growth and ease credit conditions for businesses.
The PBOC's action aligns with earlier commitments made at a key government meeting in late April, where Chinese officials pledged to adjust the RRR “in a timely manner” to counter external challenges and stimulate domestic demand. Analysts view the cut as a signal that Beijing is prioritizing economic resilience in the face of geopolitical uncertainty.
The liquidity boost is aimed at enhancing banks’ lending capacity, supporting small and medium-sized enterprises, and maintaining overall financial stability. While China's economy has shown signs of slowing, policymakers have been cautious about aggressive stimulus, opting instead for targeted tools like RRR adjustments to fine-tune monetary conditions.
This move also reflects broader efforts by Chinese authorities to manage the fallout from the ongoing U.S.-China trade war, which continues to disrupt global supply chains and weigh on investor sentiment. As the conflict deepens, market watchers expect further policy easing measures in the months ahead.
The PBOC’s latest intervention underscores China’s commitment to sustaining growth amid external shocks, with liquidity support emerging as a key lever in its economic strategy.
