Reserve ratio cuts to tackle slowdown

The central government will not shift its policy direction amid the economic slowdown, but will intensify targeted financial easing in coming months, the State Council said in a statement on Friday.

The statement, which followed an executive meeting of the council, said the government will strengthen the "targeted reduction" of the reserve requirement ratio - the amount of money banks have to set aside as reserves.

The statement said banks that have lent "a certain portion" of their total loans to agriculture-related firms, small and micro-sized enterprises and other companies that cater to economic restructuring demand, would enjoy the ratio cut. It did not specify the portion required.