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PBOC Seen Ready to Cut RRRs or Rates When Needed: Journal

CHINA PRESS
MNI (Singapore)

The PBOC is likely to increase liquidity by cutting the reserve requirement ratios or even interest rates this year when the market needs it, the China Securities Journal reported citing Zeng Gang, deputy director of the National Institution for Finance & Development. The probability of RRR cuts is higher, as it will improve liquidity more directly and drive banks to increase capital investment and lower credit costs, the newspaper cited Zeng as saying. The PBOC will provide medium and long-term, low-cost funds for specific entities and areas such as technology innovation, SMEs, rural revitalization and carbon emission through monetary tools such as special-purpose re-lending and rediscounting, Zeng was cited as saying.

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