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PBOC May Cut Reserve Requirement Ratios In Near Term: Journal

CHINA PRESS
MNI (Singapore)

The People’s Bank of China may cut reserve requirement ratios (RRR) soon to help boost banks’ long-term funding, the China Securities Journal said citing chief economist Ming Ming at Citic Securities. About 63% of investors expect RRR cuts in the next three months, while only 47% also expect rate cuts, the newspaper said citing a survey by Huatai Securities. Commercial banks are under liabilities pressure as seen in the recent rise in the interbank deposit rate, the newspaper said. The central bank has made net injections of liquidity for the last five straight days, signaling its intention to keep liquidity ample, said the journal.

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