MNI BRIEF: PBOC To Cut RRR, Rates When Needed - Governor Pan
MNI (BEIJING) - The People’s Bank of China will lower the reserve requirement ratio (RRR) and interest rates at an appropriate time, said PBOC Governor Pan Gongsheng told a press conference during the National People's Congress on Thursday.
Pan noted there is still downward space for RRR which sits at an average level of 6.6%, noting any cut would depend onthe domestic and international economic situation and financial market conditions. The PBOC will also work on institutional arrangements to support the capital markets, alongside the China Securities Regulatory Commission, while resolutely guarding against the overshooting risk of the yuan exchange rate.
MNI reported earlier the PBOC will strengthen support for stock and real estate markets as the country’s top policy meeting officially included their performance in its mandate, and is also likely to soon announce further easing as it seeks to meet the newly-renewed target of GDP growth of 5%. (See MNI: PBOC To Buoy Assets, As Stocks, Property Added To Mandate)