China's central bank will cut banks' reserve requirement ratio by 50 basis points and further reduce key interest rates to support a recovery in prices, its governor Pan Gongsheng said on Tuesday. Pan,

The People's Bank of China, the country's central bank, announced on Tuesday that it will soon reduce the bank reserve requirement ratio by 0.5 percentage points, injecting around 1 trillion yuan ($141.81 billion) in long-term liquidity into the financial markets.

China will cut the amount of cash banks need to have on hand, known as the reserve requirement ratio or RRR, by 50 basis points.