PBOC official: RRR is at appropriate level, there is limited room for further cuts

Author: Justin Low | Category: Central Banks

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.

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