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PBOC May Cut RRRs in Q1: Journal

CHINA PRESS
MNI (Singapore)

The People’s Bank of China is likely to further cut banks’ reserve requirement ratios in Q1 after the authorities hinted that there is room for RRR cut, China Securities Journal reported citing analysts. At least one RRR cut is required as banks’ reserve accounts will need to increase by CNY1.5 trillion in 2022 along with growing deposits, and conducting MLFs alone will not be enough, the newspaper said citing analyst Xie Yunliang with Cinda Securities. Following recent rate cuts, RRR cuts can help fill the liquidity gap amid the Spring Festival starting at the end of January, tax season and local government special bond issuance, the newspaper said citing Huang Wentao, chief economist of CSC Financial.

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