PBOC’s Ma: There is a big room for further RRR cuts
|Ma Jun, an external adviser to the People's Bank of China’s (PBOC) monetary policy committee (MPC), said that the central bank has a relatively big room for further Reserve Requirement Ratio (RRR) cuts and targeted RRR cuts.
He added that the PBOC can also ramp up open market operations (OMOs) if necessary.
This comes after the central bank unexpected left the Loan Prime Rate (LPR) rate unchanged this month, as the coronavirus situation improves in the country, with households and businesses returning to normalcy.
Market reaction
Markets are enjoying some signs of risk recovery amid positive Asian stocks, as the global stimulus measures to fight the virus outbreak seem to be playing out.
The rush for safety in the greenback is seen losing steam, as the US dollar index corrects sharply from three-year highs, dragging USD/JPY back below 110.00 alongside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.