The People's Bank of China announced on 7 May 2025 that it would cut the reserve requirement ratio by 50 basis points, effective 15 May 2025, a move expected to release approximately one trillion Chinese yuan of long-term liquidity into the financial system. The central bank simultaneously reduced its seven-day reverse repo rate — the benchmark short-term policy rate — by 10 basis points to 1.4%, with loan prime rates expected to follow in due course. Announcing the package of 10 measures at a State Council Information Office briefing, PBOC Governor Pan Gongsheng said the global economy was full of uncertainties, with economic fragmentation and trade tensions intensifying; the easing came as higher US tariffs weighed on China's outlook.
The announcement came weeks after sweeping US tariff increases and ahead of US-China trade talks.