China's Central Bank Cuts Reserve Ratio For Banks

The People's Bank of China on Wednesday cut its reserve-requirement ratio for banks by 0.5 percentage points, in a bid to boost lending to businesses and bolster the economy. The central bank said the ratio for most banks will fall to 19.5% after the cut takes effect. Metals rose after the news, with gold for April delivery trading $7.90 higher at $1,268.20 an ounce. The Australian dollar , which is seen as a China proxy, rose against most other currencies after the move. At last check, it was trading at 78.01 U.S. cents, up from as low as 77.56 cents earlier in the day. Asian stock markets were closed at the time of the PBOC announcement.