It is completely possible that the......>

CHINA PRESS: It is completely possible that the People's Bank of China could

lower its required reserve ratio given the excess reserve ratio is quite low,

Sheng Songcheng, a counsellor at the PBOC, said in a report in China News

Service on Tuesday. However, a cut in the RRR will be signal to markets that the

central bank had loosened policy, which is not in line with the central bank's

monetary policy stance right now, Sheng said. Cutting the RRR is not flexible

because the PBOC could not turn around and raise the RRR ratio if needed, so the

PBOC is more likely to use other monetary policy tools like its Standard Lending

Facility (SLF), its Medium-term Lending Facility (MLF) and its Pledged

Supplementary Lending (PSL) facility to increase liquidity as needed, Sheng

said. (China News Service)