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PBOC's Zhang against further RRR cuts for now

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - Zhang Xiaohui, assistant governor of the PBOC's monetary policy department, remains against any further reduction of the reverse requirement ratio, last Tuesday's PBOC meeting minutes revealed, after market sources obtained a 'leaked' document over the weekend.


    China will not cut the reserve requirement ratio (RRR) for the time being to avoid creating more depreciation pressure on the yuan

    PBOC needs to cautiously maintain yuan stability when managing liquidity
    The policy signal which stems from a RRR cut would be too strong, while other tools could also be used instead to inject liquidity
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