The People's Bank of China (PBoC) has declared a 0.5 percentage point cut in the reserve requirement ratio for banks, effective from February 5th. Pan Gongsheng, the governor of PBoC, emphasized that China would maintain a prudent monetary policy in 2024, focusing on flexibility, moderation, accuracy, and effectiveness. The move is aimed at creating a favourable monetary and financial environment, providing support to major strategic areas and key sectors.