China Press: PBOC should use OMOs as a monetary policy tool to control money supply

Bloomberg reports an article published in China’s Financial News this Monday, which argues that the PBOC’s – Chinese central bank should replace the use of reserve requirement ratio with open market operations (OMOs).

Key Points:

Use them as a monetary policy tool to control money supply

Before cutting the reserve requirement ratio (RRR) China must address an "unbalanced economic structure and excessive liquidity"