PBOC may cut its RRR in September – China Press

Dhwani Mehta FXStreet

The People's Bank of China may cut its Reserve Ratio Requirement (RRR) rate in September, China Securities Journal reported early Thursday, citing an analyst.

This effort is seen to help the economy, the Chinese media outlet reported.

Earlier on China's State Council promised increased support for the real economy while hinting towards a potential for RRR cuts at an appropriate time.

Amidst increasing rate cut chatter, the yields on China’s 10-year government bonds falls to 3.037%, the lowest since August 26 2020.

Meanwhile, USD/CNY is off the daily lows at 6.4727, now trading at 6.4736, almost unchanged on the day amid risk-aversion.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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