PBOC may cut Reserve Requirement Ratios in near term – China Press

Dhwani Mehta FXStreet

The People's Bank of China (PBOC) remains poised to slash the reserve requirement ratios (RRR) soon to help boost banks' long-term funding, the China Securities Journal said citing an analysts’ survey.

Key takeaways

About 63% of investors expect RRR cuts in the next three months, while only 47% also expect rate cuts.

Commercial banks are under liabilities pressure as seen in the recent rise in the interbank deposit rate.

The central bank has made net injections of liquidity for the last five straight days, signaling its intention to keep liquidity ample.

Market reaction

USD/CNY has picked up fresh bids in tandem with the US dollar, despite the risk-off tone in the global equities.

The spot was last seen trading at 6.3762, up 0.06% on the day.

AUD/USD is trading on the defensive near 0.7500, modestly flat so far.

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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