MNI: PBOC To Further Cut RRR If Necessary, PBOC Ma - Press

     BEIJING (MNI) - The People's Bank of China will cut reserve ratios further

and increase liquidity injections to stabilize the economy when necessary, Ma

Jun, a member of the central bank's monetary policy committee, told Shanghai

Securities News Friday. 

     There is still a relatively a lot of room for the PBOC to cut RRR at both

full and targeted paces and the central bank will also strengthen its open

market operations if necessary, Ma said. 

     The comments came after the central bank Friday unexpectedly left the Loan

Prime Rate (LPR) unchanged for this month. As the coronavirus outbreak hits the

domestic and global economy and other major central banks have ramped up easing

moves, many thought the PBOC would guide rates lower.

     Ma explained it will take time for banks to lower their prime rate quotes

following the PBOC's RRR cut in the middle of the month. 

     In addition, Ma noted the lending rates would go down even with the LPR

remaining unchanged for now, predicting actual loan rates would see a fall this

month as LPR was cut in February.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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