Listen: Andrew Walker, Kimberly Adams, China discussed on Morning Edition
"I'm Kimberly Adams in for David Brancaccio. China's central Bank announced today it would lower the reserve requirements for banks in the country. It's the fifth time in a year. The People's Bank of China has cut the amount of cash individual banks have to keep in reserve. This is part of China's efforts to address slowing economic growth for more on this. I'm joined by BBC economics correspondent Andrew Walker and Andrew Howard, cutting this rate help boost Chinese growth banks will not need to put aside quite so much by way of cash and and reserves they have in accounts at the central Bank when they expand their lending. And so that will mean that it'll be a little bit easier for them to provide more loans to to businesses and consumers so it could boost credit somewhat. And thereby encourage consumers and businesses to borrow more to spend is. Is it sustainable then to keep lowering that safety cushion of cash in Chinese banks? There are certainly concerns that have been expressed repeatedly over the last few years about the rapid growth in credit. There has been in the in the Chinese economy. So absolutely there is a limit to how far you can go in offsetting a slow down by encouraging the banks and other parts of the financial sector lend. More the BBC's Andrew Walker. Thank you so much, my pleasure, Kimberly. And let's do the numbers."