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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.

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