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Probabilities of RRR and Rate Cuts in Q2 Increase: Securities News

CHINA PRESS
MNI (Singapore)

China is more likely to cut reserve requirement ratios and interest rates in Q2 after the latest release of its loan data, the Shanghai Securities News said citing analysts. Data released yesterday indicated a lack of demand by businesses, residents and consumption, which makes pro-active policies more necessary, the newspaper said. However, the central bank’s policy space may be limited given the inversion of China-U.S. interest rate spread, so structural tools have become more important, the newspaper said.

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