CCTV Script 20/04/15

— This is the script of CNBC's news report for China's CCTV on April 20, Monday.

China's central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding 1.2 trillion RMB liquidity to the world's second-biggest economy to help spur bank lending and combat slowing growth.

The People's Bank of China (PBOC) lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 percent, effective from April 20.

The latest cut, the deepest single reduction since the depth of the global crisis in 2008, shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy.

[RICHARD YETSENGA, ANZ] "Everything has been telling us that China would ease and they have eased more than expectation. The Question is will this be acted on? When i look at global economies, china equity mkts is certainly telling us there is still vigor in the economy and still some risk appetite. Dont think we should be too critical and dismissive of this move, this could give us some reasonable reaction over next couple of months."

How will markets react after the cut?

Analysts say, a slightly weaker renmibi in the short-term, and an even more bullish Chinese stock market.

[Koon How HENG, Senior FX Strategist, Investment Strategy & Reseach at Credit Suisse] "The negative impact on the renminbi is clear, the direction is that it should weaken for a little bit, we expect the Chinese to allow it to weaken by mostly 1 or 2 percent, at least in line with US dollars' strength heading into the rest of this year."

[FREDDY LIM, Managing Director, Global Head of Derivatives Strategy at Nomura International] "It buys you time. It's the game changer for the markets because as you can see so far, every time we have a bad data in China, equity market goes up, it's just so much money floating around, waiting to be deployed. With the stumulus in place now, in the near term, we'll get another boost, or another fuel for the markets, so fundementals and the markets are goona diverge a little bit more."

Markets widely expect further RRR cuts between May and June, with Sunday's announcement marking the central bank's shift to an aggressive easing cycle from its previous method of 'targeted stimulus.'

Macquarie expects an interest rate cut in May, followed by a 50-bps RRR cut later in the year. Over the next five years, it expects China to cut the RRR at least twenty times. Meanwhile, HSBC expects lower interest rates during the second-quarter and another 100 basis-point reserve ratio cut sometime in the second half of the year.

CNBC's Qian Chen, reporting from Singapore.

Follow us on Twitter: @CNBCWorld