PBOC says will cut interest rates and RRR at the proper time
To keep liquidity conditions ampleWill guide social financing costs to become lowerWill maintain yuan exchange rate basically stable at a reasonable, balanced levelAs a reminder, China last cut the RRR back in September last year here. They tend to do so once every six months since embarking on this easing cycle but there have been questions lately about whether one will be imminent in March. For some context, the PBOC did change up its wording on monetary policy in wanting to keep it "moderately loose" now. But it seems like that first rate cut after the change may take a while longer. This article was written by Justin Low at www.forexlive.com.
- To keep liquidity conditions ample
- Will guide social financing costs to become lower
- Will maintain yuan exchange rate basically stable at a reasonable, balanced level
As a reminder, China last cut the RRR back in September last year here. They tend to do so once every six months since embarking on this easing cycle but there have been questions lately about whether one will be imminent in March. For some context, the PBOC did change up its wording on monetary policy in wanting to keep it "moderately loose" now. But it seems like that first rate cut after the change may take a while longer.
