NEW YORK (CNNMoney) -- China's central bank took further action Saturday to stimulate its economy.
The People's Bank of China is cutting the amount of money banks are required to hold on the sidelines, freeing up those funds instead to boost investment and growth.
The central bank will lower its reserve requirement ratio for financial institutions by 0.5 percentage points, effective May 18, according to China's official news agency Xinhua.
China's trade with foreign countries has also slowed recently, feeling the impact of Europe's woes and the U.S. economy's sluggish growth.
"The move was partly expected given the deterioration in recent Chinese economic indicators," said Societe Generale currency analyst Sebastien Galy.
Overall, economic growth decelerated in the first quarter, and the People's Bank of China wants to prevent that slowdown from persisting.
The central bank has focused on freeing up credit by gradually injecting funds into the money supply and cutting reserve requirements for banks.
|How a marijuana ad went up in smoke|
|2 million students missing out on college aid|
|GM raising Corvette prices|
|Boeing reports wing cracks on Dreamliners|
|China to fight pollution with drones|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.37%||4.31%|
|15 yr fixed||3.40%||3.32%|
|30 yr refi||4.38%||4.31%|
|15 yr refi||3.39%||3.32%|
Today's featured rates:
|Latest Report||Next Update|
|Home prices||Aug 28|
|Consumer confidence||Aug 28|
|Manufacturing (ISM)||Sept 4|
|Inflation (CPI)||Sept 14|
|Retail sales||Sept 14|