China May Cut RRRs for Selected Banks at End of Q3: Journal

China may selectively cut the reserve requirement ratios for medium and small banks at the end of Q3 if the country's inflation starts to fall in July, the China Securities Journal reported citing Wen Bin, the chief researcher at Minsheng Bank. Wen, a frequent commentator for official media, was cited after the State Council said in an executive meeting on Wednesday that monetary policy tools such as RRR cuts will be used to further strengthen financial support to the real economy. The PBOC cut RRRs of rural and urban commercial lenders by 1% over a year ago to 9.5%, compared to RRRs of major national banks at 12.5%, the newspaper said.