PBOC official: China's RRR cut won't alter resolve to lower risk

The official China Daily reported a senior PBOC official saying on Monday, as cited by Reuters, the Chinese central bank’s plan to slash the reserve requirement ratio (RRR) for some banks effective 2018 would not change the policymakers’ resolve to lower financial risk.

Key Quotes:

“Some financial institutions, which have appealed for an easing of monetary policy, do feel liquidity stress during the (anti-leverage) campaign to tame interbank borrowing in order to prevent systemic risks.”

the PBOC is more likely to use “monetary policy fine-tuning in the future compared with the situation in March and last year, supported by a further stabilized macroeconomic base.”