The PBOC is likely to cut the reserve...>

CHINA PRESS: The PBOC is likely to cut the reserve requirement ratio at the end

of June or in early July to provide long-term funds to ease the liquidity gap

due to the maturity of medium-term lending facilities (MLFs) this month, the

Economic Information Daily said in a commentary. The PBOC may consider cutting

interest rates again after inter-bank interest rates return to a desired level,

structured deposits reduce and the arbitrage of funds ease, the newspaper said.

There is room for cuts of between 20-30 bps on the MLF rate in Q3 and Q4, and

the benchmark deposit rate may also be lowered in Q3 given the easing of

inflation and the narrowing of banks' net interest margins, the Daily said.