Growing Expectations For PBOC RRR Cut In Q4: Yicai

Expectations are growing that China will ease policy, including a reserve requirement ratio cut in Q4, Yicai.com reported. Policymakers have been fine-tuning policy to prevent a further economic slowdown since October and Q4 will be the window period for a 50-basis point RRR cut, the newspaper said citing Ding Shuang, Standard Chartered Bank's chief Greater China & North Asia economist. Lu Ting, chief economist with Nomura China also expects monetary easing and fiscal stimulus will soon increase, with rising possibility of RRR cut in the next few months, as policymakers focused on stabilising growth and employment at a recent meeting. But major measures to control debt-raising by developers won't be relaxed and the central bank may take certain measures if the yuan continues to strengthen, the newspaper said citing Lu.