Cutting China’s Bank Reserve Ratios Needs ‘Catalyst’: Daily

China may mainly use structural monetary tools to ensure liquidity, with Open Market Operations playing significant role "smoothening" short-term liquidity volatilities, the Economic Information Daily said. While cutting banks' reserve requirement may still be necessary, there needs to be a "catalyst" and the market shouldn't place high hopes on a rate cut, the Xinhua-owned newspaper said. The comment came after the PBOC on Monday conducted CNY1 trillion MLF and CNY10 billion reverse repo, net-injecting CNY910 billion, which was a pre-emptive measure ahead of maturing MLFs and tax remission. The central bank has increased reverse repo since Nov. 3 and ensured "loose-leaning" stable liquidity, said the newspaper.