REPEAT: A consensus is building amongst.......>

CHINA: REPEAT: A consensus is building amongst policy advisors that China's

current required reserve ratio (RRR) is still too high and needs to be urgently

cut to a normal level, MNI understands. A well-known PBOC advisor told MNI that

the People's Bank of China will probably cut the RRR again this year.

Additionally, MNI learned that many policy advisors advocate a significant

reduction in the RRR, as it would greatly inject capital into the system without

the need to expand the entire size of the credit pool. Under the background of

boosting domestic demand, a continued 'neutral' stance of monetary policy and a

continuance of the deleveraging push, a further RRR cut should be put on agenda.

(MNI - For Full Story See Main Wire At 08:05 BST 05/09)