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Is the PBoC’s RRR Cut Telling Us Something About Impending Risk Events?

CHINA

MNI (London) - Some more thoughts on the RRR cut from China.

  • The PBoC noted that the move aims to “consolidate the foundation of economic recovery and keep ample liquidity.”
  • It is worth reminding that the run of monthly economic activity data out of China and latest MLF operations will cross on Friday.
  • Could this be a potential signal re: weak data/action via the MLF operations?
  • We can’t rule that out, although the well-documented Chinese economic headwinds and general expectations for a further RRR cut (albeit skewed towards Q4) are also likely facilitators.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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