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Scotiabank note that “Chinese Premier Li recently stated that a cut to the required reserve ratio applied to banks may be delivered “at proper time.” Any day now would be welcome given mounting downside risks. If a cut takes place, the move could free up somewhat more bank capital to apply to lending which could help to stimulate China’s sagging economic growth. Events over the course of this week might offer a suitable backdrop for such a move including CPI on Thursday and the aggregate financing figures for the overall economy that are due at some point this week or next.”