China's central bank said on Tuesday it will cut the amount of cash most commercial and foreign banks must hold as reserves to pay back loans obtained via its medium term lending facility, a move aimed at freeing up funding for small firms.





The unexpected move came after official data earlier on Tuesday showed that China's economy grew a faster-than-expected 6.8 percent in the first quarter.





The People's Bank of China (PBOC) said on its website it would cut the reserve requirement ratio (RRR) - currently at 17 percent for large institutions and 15 percent for smaller banks - by 100 basis points (bps).