In the Wall Street Journal over the weekend:
- The People's Bank of China is preparing to flood the banking system with liquidity to boost lending, according to officials and advisers to the central bank,
- Says the recent PBOC currency moves are squeezing yuan funds out of the market and renewing concerns over capital leaving Chinese shores
- The planned step involves cutting the deposits banks are required to hold in reserve ... forcing it to again resort to the reserve-requirement reduction
- The move, which could come before the end of this month or early next month, would involve a half-percentage-point reduction in the reserve-requirement ratio, potentially releasing 678 billion yuan ($106.2 billion) in funds for banks to make loans
More at the article: China Poised to Raise Banks' Liquidity to Boost Lending
