PBOC says will cut RRR and interest rates at appropriate time

Forex Short News
  • Will improve monetary policy control and adjustment to be more forward-looking, effective
  • Will keep liquidity ample, guide financial institutions to strengthen credit supply
  • To push for social financing costs to be lower
  • To strengthen resilience of forex market, stabilise market expectations
  • Will keep yuan exchange rate at reasonably stable level

They’ve been keeping up this rhetoric for the whole month now, even before the National People’s Congress. But I reckon they would be more comfortable in pursuing a RRR cut next when there is less pressure on the yuan currency. And with that, meaning more clarity from Trump’s tariffs.

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