Former PBOC Advisor: Need to wait and see if another RRR cut is required
|With China’s economy is recovering pretty well, the best thing to do is to wait and watch whether another cut in the reserve requirement ratio (RRR) is necessary.
China had cut the RRR ratio in January with an aim to help the economy absorb shocks from Trump’s trade war.
The move seemingly worked as the annualized growth rate stabilized at 6.4 percent in the first quarter.
That said, the central bank is working on implementing lower RRR for banks which cater to small private companies, according to Xinhua.
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