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China will likely cut the reserve.......>

CHINA PRESS
MNI (London)
CHINA PRESS: China will likely cut the reserve requirement ratio (RRR) by around
1% in January, the China Securities Journal reported Monday, citing Pan
Xiangdong, chief economist at New Times Securities.
- Given that an RRR cut sends a strong signal of monetary easing, the central
bank will probably mainly use tools such as refinancing, rediscounting, PSL, MLF
and OMO to release liquidity by the end of this year, the Journal said, citing
Pan.
- However, it is possible the PBOC announce of next year's RRR cut at an earlier
stage, perhaps later this year, which will steer banks towards parking money in
private, small or innovative companies, so as to meet the conditions of any
targeted RRR cut.
(Link to the story: https://bit.ly/2Q8IyeK)
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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