Free Trial

Analysts Divided On Need For RRR Cut - Securities News

CHINA PRESS
MNI (Singapore)

Market analysts are divided on outlook for further cuts to the reserve requirement ratio and interest rates, with some analysts seeing the possibility of a RRR cut in December or January, Shanghai Securities News reported. Some analysts argue low-cost funds should be provided to banks through RRR cuts as they face narrowing interest margins as home loans will need to be re-priced early next year following a total 35bp cut to the 5-year Loan Prime Rate this year, the newspaper said citing Postal Savings Bank researcher Lou Feipeng. Other analysts said the central bank will be wary of easing as high U.S. inflation is unlikely to change significantly, the newspaper said.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.