China on Wednesday, January 24, 2024, said it would in February 2024, cut the amount banks must hold in reserve to boost lending.

The decision comes as the world’s second-largest economy faces multiple headwinds, including a prolonged crisis in the property sector, sluggish domestic consumption and weakening foreign demand.

People’s Bank of China Governor, Pan Gongsheng, who gave the revelation at a press conference of the State Council Information Office, noted that the reserve requirement ratio (RRR) will be lowered by 0.5 percentage points on February 5.

The move, according to reports, would provide one trillion yuan (140 billion dollars) of liquidity to the market.

China last cut its RRR in September, lowering it by 0.25 percentage points to around 7.4 percent.

The central bank’s governor also stressed today that more policies to offer support for the country’s struggling property sector will be announced tomorrow, Thursday, January 25.