BEIJING, April 3 (Xinhua) - China's central bank on Friday announced a decision to cut the reserve requirement ratio (RRR) for small and medium-sized banks by 100 basis points in its latest effort to bolster the real economy amid the novel coronavirus outbreak.

(File photo: VCG)

The RRR cuts will be implemented in two phases, with the first round of 50 basis-point reductions expected on April 15. The second phase of reduction of equal amount will be effective on May 15, said the People's Bank of China (PBOC), the central bank, in an online statement.

The reduction in the cash that lenders must hold as reserves is expected to unleash around 400 billion yuan (about 56.3 billion U.S. dollars) of long-term capital into the market, the PBOC said.

The PBOC will also cut the interest rate on excess reserves for financial institutions from 0.72 percent to 0.35 percent starting April 7, the first time it slashes the rate since 2008, it said.