Chinese financial media reports, again, that there is room for cuts to the RRR this year | Forexlive


Chinese financial media reports, again, that there is room for cuts to the RRR  this year | Forexlive

In a China Securities Journal article analysts say they see space for further cuts to China's Reserve Requirement Ratio (RRR) this year. By 100 to 200 bp.

The People's Bank of China last cut the RRR on May 7. A 50bp cut.

I'd suggest it'll be many months before we see another cut.

The Reserve Requirement Ratio (RRR) is a central bank regulation that sets the minimum amount of reserves each bank must hold in relation to their deposit liabilities. Its the percentage of total deposits that banks are legally required to keep on hand, either as cash in their vaults or in a reserve account at the central bank.

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