PBOC governor Pan: There is still room for cutting RRR

  • China still has sufficient room with regards to monetary policy
  • Still have rich monetary policy tools at its disposal
  • To keep yuan exchange rate basically stable
  • To help consolidate and strengthen economic recovery

The most important takeaway is the headline remark. It goes to show that the door is open for more RRR cuts in the months ahead, after the move in February here. For some context, China only cut its RRR twice last year – one in March and one in September.

This article was written by Justin Low at www.forexlive.com. Source