China Securities Journal says PBOC unlikely to cut RRR in the short term

A front page piece in the China Securities Journal

• PBOC unlikely to cut reserve requirement ratios in the short term

(Note, the Bank added liquidity through reverse repos and medium term lending facility yesterday, equivalent of the amount of MLF maturing that day)

Goes on:

• better-than expected Q1 economic data places the PBOC under less pressure to cut RRR
• PBOC expected to continue reserve repo injections with greater intensity in the near future

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A cut to the RRR is usually taken as a positive input for China proxy and risk trades. This news, then, perhaps a little negative, but offset somewhat by the paper asserting a greater intensity of RR injections.