MNI China Press Digest, Feb 18: PBOC, Rate Cut, Coronavirus

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Tuesday:

     The PBOC is unlikely to loosen monetary policy given rising inflationary

pressures, and is instead expected to use tools such as targeted reserve

requirement ratio cuts to stimulate the real economy, Securities Times said in a

front page commentary. The Times says the cuts are expected to be used with

refinancing measures to help the economy in areas impacted by the coronavirus

epidemic. Short-term liquidity recently injected by the PBOC aims to smooth

financial market fluctuations temporarily, but the main goal of monetary policy

should be to serve the real economy, the commentary said. 

     Lowering the benchmark interest rate for deposits would be effective in

cutting costs for commercial banks in China even though the central bank has

lowered rates in the money market, according to analysis from Citic Securities.

The comments were reported by the China Securities Journal, which also cited

analysis from Mingsheng Securities, which said that lowering the benchmark

interest rate for deposits could also boost consumption and maintain positive

rate spreads between deposits and loans. 

     Local governments in China should strengthen epidemic controls and promote

an orderly resumption of work and production, according to a statement on the

government website. Citing the meeting of the Central Leading Group for

Coronavirus, the statement said local authorities should develop transport plans

to help migrant workers return to work safely. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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