PBOC Still Likely To Cut Rates, RRR In H2-Journal

The People’s Bank of China still have sufficient room for monetary easing including cuts to the reserve requirement ratio and interest rates, as domestic inflation pressure is controllable and the spillover effect of the Fed rate hike cycle has passed its peak, the China Securities Journal reported in the front-page citing analysts. The medium-term lending facility rate may be lowered slightly once in H2, the newspaper said citing Huang Wentao, chief economist of CSC Financial. Mid-year or year-end could be a suitable timing for RRR cuts to meet the liquidity gap of large-scale issuance of government bonds and the maturity of MLF, the newspaper said citing Ming Ming, chief economist of CITIC Securities.