Also worth noting that the comments re:.......>

CHINA: Also worth noting that the comments re: future targeted RRR cuts came

from the same PBoC Deputy Governor that was pushing the idea of benchmark

deposit rate cuts over the weekend... has he had has ideas pared back? Remember

commentary in the state owned media showed some reluctance re: the matter

earlier this week, see below:

- The PBOC should be cautious in lowering the benchmark for deposit interest

rates as any cuts would change prudential monetary policy, according to the

Securities Times. In a front page commentary, the newspaper said China's banks

should optimize their business models to keep themselves profitable as loan

rates have been guided down by the central bank. Banks have also cut their

short-term profit projections and stepped up supports to the real economy, with

a focus on small and medium enterprises, the newspaper added.