PBOC May Cut RRR Slightly By Year-end - Journal

The People’s Bank of China may consider a small reserve requirement ratio cut by the end of this year when a large amount of medium-term lending facility matures and drains liquidity, China Securities Journal reported citing analysts. There are CNY1 trillion and CNY500 billion of MLFs maturing in November and December, respectively, the newspaper said. Analysts believe the inflation peak has passed and CPI will continue to be within the price control target of 3% in Q4, which provides monetary easing space, the newspaper said. With overseas interest rate hikes slowing, it is expected the PBOC would launch RRR and interest rate cuts accordingly to expand credit and lower financing costs, the newspaper said citing analysts.