China will cut the reserve requirement ratio (RRR) for banks at an appropriate time to strengthen support for the real economy, especially for small- and medium-sized enterprises, Premier Li Keqiang said Friday. 

A lower RRR means banks do not need to keep as much cash in their reserves, which gives them more money that can be loaned to companies.

The country will continue to implement prudent monetary policy, maintain liquidity at a reasonably ample level and make policies according to the needs of market entities, so as to ensure the stable and healthy development of the economy, Li said during a video meeting with Kristalina Georgieva, managing director of the International Monetary Fund.

China will continue to coordinate COVID-19 epidemic control efforts with economic and social development, implement stable macroeconomic policy and make it more targeted and effective, he said.