world markets: World markets rattled by US inflation concerns Read more The reserve cut, the fourth by the People's Bank of China PBOC this year, came after Beijing pledged to speed up plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further, according to The Guardian. Investment growth has slowed to a record low and net exports have been a drag on growth in the first half of the year. As higher US interest rates and fears of a trade war piles pressure on economies around the world, China's central bank said on Sunday that it was cutting the reserve requirement ratios RRRs by one percentage point from 15 October to lower financing costs and spur growth in the world's second-biggest economy. China releases a snapshot of its services sector on Monday, which will be closely watched for signs of slower growth. The injection of cash into the economy, which will be 750bn yuan 109.2 billion will also boost hopes that the negative impact of higher US tariffs on Chinese exports can be eased. Reserve requirement ratios RRRs - currently 15.5% for large commercial lenders and 13.5% for smaller banks - would be cut by 100 basis points from October 15, the PBOC said.
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