China Xinhua: fully-fledged cut of the reserve requirement ratio (RRR) for banks is unlikely

China Xinhua reports cites ‘economists’ as saying:

• a fully-fledged cut of the reserve requirement ratio (RRR) for banks is unlikely
• Says the PBOC prefers targeted monetary tools
• While some analysts see a rising possibility of a RRR or rate cut, Peng Wensheng, chief economist of the China International Capital Corporation (CICC), said such a possibility is small. There is a tendency for the central bank to resort to capital injection instead of RRR or rate cuts in easing the monetary policy, he said.“Another explanation is the economic situation is not that bad, and the central bank prefers low-profile and targeted monetary easing. A RRR cut is not only high-profile, but also has too strong an influence,”

More here: RRR cut unlikely: economists

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Earlier I had an item from the China Securities Journal:

• China may loosen monetary policy ‘in some areas’
• May cut reserve ratio requirement in some regions
• May relax the loan-deposit ratio limit