MNI SOURCE: Expect More RRR Cuts, M2..........>

CHINA: MNI SOURCE: Expect More RRR Cuts, M2 Rebound 9%: PBOC Source

- China's latest Politburo meeting emphasized the importance of stable economic

growth, placing maintained economic growth levels higher up the agenda and

hinting at more easing policies, a source close to the PBoC told MNI.

- "Although the policymaker has not addressed the change directly, there are

already signs," the PBOC official said. "So we would see more RRR cuts and M2

growth is expected to rebound above 9% this year," he added.

- The Politburo meeting, alongside last week's RRR cut, conveys a signal that

the central gov't has become more focused on maintaining economic growth, rather

than financial deleveraging. How the gov't decides to expand domestic demand

while adjusting the economic growth structure needs to be closely watched.

- Increasing domestic demand has often referred to boosting property investment

and more infrastructure investment. However, this time around, due to concerns

over financial risk and the deleveraging moves, the focus will likely be on

encouraging domestic consumption. (MNI - For Full Story See Main Wire At 09:10

BST 04/24)