PBOC official: RRR is at appropriate level, there is limited room for further cuts
PBOC head of monetary policy, Sun Guofeng, is speaking
- Whether rate cut is needed depends on liquidity
- Current liquidity conditions are reasonable
- PBOC will keep liquidity stable ahead of Chinese New Year period
- Benchmark deposit rate will stay for now and PBOC will make adjustments as needed
The headline may not go down too well with Chinese investors but I reckon it is one mentioned to just keep the facade that the PBOC isn't seen to be aggressively easing.
We have already seen a 50 bps RRR cut earlier this year and there's a good chance it won't be the last before the year comes to an end.