I just got a 'Dear John' letter from the president of China!
Well, its 'Dear Eamonn', and its an email, but you get the idea...
Dear Eamonn,
Its been fun, you're a great guy and I've really enjoyed our times together.
But, you want commitment on a RRR cut, and I'm just not ready.
Last week the PBOC provided heaps of extra liquidity to the market for the New Year.
I feel that such extra provision of funds achieves the purpose of liquidity without prompting more expectations of a RRR cut and risking further yuan falls and thus further capital outflow.
So, although its been fun, I can't commit to an RRR cut just now.
Please stop calling me, I need to move on
Xi
:-D
