PBOC economist Ma Jun says overuse of RRR cut is bad for the exchange rate

People’s Bank of China's Ma Jun in China Business News (via Bloomberg)

• Says overuse of RRR cut is bad for the exchange rate

Added:

• Overuse of reserve ratio cut may put too much downward pressure on short-term interest rates
• Thus bad for stabilizing capital flows and foreign exchange rate
• Market should focus on short-term interest rates, especially 7-day repo rate
• PBOC lowering the MLF rate this time shows its efforts towards lower financing costs

-

He was speaking in an interview