Bloomberg (gated) with the report:

  • Tools will be used “in a timely and appropriate manner” to maintain reasonably ample liquidity, the State Council said Wednesday, broadcaster CCTV reported. The People’s Bank of China usually cuts the amount of cash banks have to keep in reserve within days of such statements by the cabinet.
  • “This is in line with our expectations for another RRR cut by year-end. We expect a broad-based RRR cut by 25 or 50bps,” said Liu Peiqian, chief China economist at NatWest Group Plc. “The announcement may be imminent, as early as this Friday, since the State Council has signaled the policy move.”

More at that link if you ar a subscriber to the Bloomberg service.

PBOC building