I posted on the strong signal of a cut coming out China earlier:

Goldman Sachs tipping the same:

  • Premier Li held the State Council meeting today (April 13th) and required policymakers to roll out measures to support consumption.
  • He also hinted at a potential RRR cut and required financial institutions to further lower funding costs for the real economy.
  • We expect the PBOC to deliver a 50bp RRR cut and potentially also an interest rate cut in the next few days.


RRR is Reserve Requirement Ratio, the amount of cash that banks must hold as reserves. A cut to the RRR frees funds for lending into the system.