PBOC official: China's RRR cut won't alter resolve to lower risk

Dhwani Mehta FXStreet

The official China Daily reported a senior PBOC official saying on Monday, as cited by Reuters, the Chinese central bank’s plan to slash the reserve requirement ratio (RRR) for some banks effective 2018 would not change the policymakers’ resolve to lower financial risk.

Key Quotes:

“Some financial institutions, which have appealed for an easing of monetary policy, do feel liquidity stress during the (anti-leverage) campaign to tame interbank borrowing in order to prevent systemic risks.”

The PBOC is more likely to use “monetary policy fine-tuning in the future compared with the situation in March and last year, supported by a further stabilized macroeconomic base.”

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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