The People's Bank of China on Sunday cut the reserve requirement ratios (RRR) by one percentage point, in a move experts believed would inject more liquidity into the market and boost a stable economy.

"Banks are serving medium- and small-sized companies. This move will enable more cash flow to the medium- and small-sized firms, to better boost a stable economy and a stable employment rate," said Wang Yong, deputy director for the Institute of Minsheng Economic Research at Tsinghua University.

The cut in RRR was the fourth by the People's Bank of China this year. The RRR, currently 15.5 percent for large commercial lenders and 13.5 percent for smaller banks, would be cut one percentage point effective next Monday.

"Actually, the PBOC plays its role as politician and economist," noted Wang Jianhui, general manager at R&D department of Capital Securities. 

He said that as a "politician", the PBOC is trying to offset any negative impact from trade war with the United States. Meanwhile, as an "economist", the bank wants to provide more liquidity into the market.

"Technically, since we have less foreign reserve, we don't need such a large requirement fund for reserve," Wang added.

The fourth cut in RRR this year came as Beijing has pledged to invest billions of dollars in infrastructure projects as the Chinese economy shows signs of additional cooling.

Wang said the government is showing sincerity to push the economy forward.

On the monetary front, the policy has been eased, while proactive action on the fiscal front such as tax cuts is on the way, Wang noted. In addition, he expected more positive moves on the trade side and stressed on the importance of structural reform.