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PBOC May Cut RRRs in Q4: Yicai.com

CHINA PRESS
MNI (Singapore)

The PBOC is likely to cut banks' reserve ratios in Q4 to offset the maturing MLFs and may use a new policy tool supporting carbon emission reduction, Yicai.com reported citing Ming Ming, research head of CITIC Securities. The scale of reverse repo operations may not increase significantly, Ming added. Though the Federal Reserve is expected to start tapering by year-end at the earliest and gradually reduce the scale of asset purchases, the PBOC will still focus on domestic goals, the newspaper cited Ming as saying. The PBOC said last week it will increase credit support for the real economy especially SMEs, while the State Council urges to establish green monetary tools in July, the newspaper noted.

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