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PBOC May Cut RRR In Q3

CHINA PRESS
MNI (Singapore)

The People’s Bank of China may cut the reserve requirement ratio in Q3 to offset the maturity of medium-term lending facilities and maintain reasonable medium to long-term liquidity, said Lian Ping, chief economist and dean at Zhixin Investment Research Institute. In H2, the PBOC may moderately lower the interest rate of structural monetary tools such as relending to support agriculture and small businesses, said Lian. The possibility of a small rate cut in Q4 cannot be ruled out after the U.S. Federal Reserve finishes its rate-hike process, said Lian. (Source: China Securities Journal)

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