PBOC May Cut RRRs in Q4 to Boost Credit and Growth: Newspaper

The People's Bank of China may implement another across-the-board cuts to the banks' required reserve ratios in Q4 to further loosen up credit and inject long-term capital to help banks' boost lending, the 21st Century Business Herald reported citing analyst Wang Qing with Golden Credit Rating International. Wang commented after the central bank conducted CNY100 billion 14-day reverse repo purchases on Tuesday, the eighth straight day injection to ease concerns about shortage due to the week-long national day holiday starting Oct. 1 and the expected increase in local government bond sales, said the newspaper. The Q3 monetary policy committee meeting held Sept. 24 called for "strengthening the consistency in credit growth," a sign that policymakers want a stronger foundation for economic growth from yearend to early next year, Wang was cited as saying.