PBoC cuts reserve requirements
But easing measure partially offset by withdrawal of other liquidity support
The People’s Bank of China took a cautious step towards monetary easing today (December 6) as it said it would cut the reserve requirement ratio (RRR) for most banks by 50 basis points.
The central bank insisted its “prudent” monetary policy stance remained unchanged. In a Q&A published on its website, it said it would not engage in “flooding” the financial system with liquidity. It estimated the RRR cut would release about 1.2 trillion yuan ($190 billion) that could be used for “long-term
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