PBOC’s Adviser Wang: Liquidity to be stable in China after the RRR cut

Dhwani Mehta FXStreet

Overall liquidity condition in the Chinese market is likely to remain basically stable, despite the People’s Bank of China’s (PBOC) RRR cut last Friday, the central bank’s policy adviser Wang Yiming said in an interview with the Chinese central bank-backed Financial News.

Key quotes

“The liquidity unleashed from the reserve ratio cut can offset the impact from the maturity of medium-term loans, government bond sales and tax payments.”

“There is no change in the PBOC’s prudent monetary policy, and the reserve ratio reduction is “a conventional liquidity operation” after a normalization of its monetary policy.”

“Liquidity in China’s banking system will remain reasonably ample after the cut.”.

PBOC slashes RRR by 50 bps, effective from July 15

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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