Core Viewpoint - The Reserve Bank of India (RBI) plans to reduce the Cash Reserve Ratio (CRR) in four equal installments, indicating a strategic move to enhance liquidity in the banking system [1] Group 1: Monetary Policy Implications - The decision to lower the CRR aims to inject more liquidity into the financial system, which could support economic growth [1] - This reduction is expected to free up approximately ₹1 trillion (around $12 billion) for banks, allowing them to lend more to businesses and consumers [1] Group 2: Economic Context - The RBI's move comes in response to the current economic conditions, where increased liquidity is deemed necessary to stimulate demand and support recovery [1] - The central bank's actions reflect a broader trend of monetary easing in response to economic challenges faced by the country [1]

Group 1 - The central bank will lower the reserve requirement ratio for financial institutions by 0.5 percentage points starting from May 15, 2025, excluding those already executing a 5% reserve requirement ratio [1] - The reserve requirement ratio for auto finance companies and financial leasing companies will be reduced by 5 percentage points [1]

Core Viewpoint - The People's Bank of China has lowered the reserve requirement ratio for financial institutions by 0.5 percentage points, aiming to enhance liquidity in the financial system and support economic growth [1] Group 1: Monetary Policy Impact - The reduction in the reserve requirement ratio is expected to release approximately 500 billion yuan (about 70 billion USD) into the economy, providing banks with more funds to lend [1] - This policy move is part of a broader strategy to stimulate economic activity amid ongoing challenges in the domestic and global markets [1] Group 2: Economic Implications - The central bank's decision reflects a proactive approach to managing economic stability and growth, particularly in light of recent economic data indicating slower growth rates [1] - By increasing liquidity, the central bank aims to support sectors that are struggling and encourage investment and consumption [1]