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CHINA PRESS: The People's Bank of China is unlikely to reduce the required

reserve ratio based on current conditions even though there have been calls for

a RRR cut, the China Securities Journal reported Thursday. The latest RRR cut

discussions were sparked by recent yuan appreciation -- which reflects long-term

concerns over a relatively low excess RRR and tight liquidity. But many experts

don't think the exchange rate is the only factor to affect monetary policy, the

newspaper said. Because the main goals of monetary policy are stabilizing

economic growth, preventing inflation and deleveraging, short-term yuan

appreciation may not be the reason for a RRR cut -- not to mention depreciation

pressure on the yuan hasn't been fully removed. Therefore, it isn't likely that

the PBOC will drop the RRR this year. Monetary policy will remain prudent and

neutral, it said. (China Securities Journal)