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Q4 Stronger Monetary Policy Needed To Adjust Liquidity

CHINA PRESS
MNI (BEIJING)

Authorities must use monetary policy in Q4 to deal with tighter liquidity caused by the planned CNY1 trillion treasury bond issuance, according to Zhong Zhengsheng, chief economist at Ping An Securities. The central bank will likely increase liquidity injections and reduce the reserve requirement in line with the issuance of the bonds, Zhong noted. Additionally, the government must act to bring real interest rates down to avoid the potential crowding-out effect of public investment on private sector investment. (Source: Yicai)

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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