According to a report cited by ChainCatcher from Jin10, Dong Ximiao, chief economist at China Merchants Union Consumer Finance, said China could roll out both a reserve requirement ratio cut and an interest rate cut in the third quarter. He said that if the momentum of the economic recovery weakens at the margin in the second half of the year, policymakers may lower the policy rate by 10 to 20 basis points at an appropriate time. On reserve requirement reductions, Dong said there is still room for a 25 to 50 basis point cut this year, with a possible implementation window during a peak in bond supply or a period of tight liquidity. The report added that the People’s Bank of China is expected to make greater use of structural monetary policy tools to adjust market liquidity.
ChainCatcher, citing Jin10, reported that Dong Ximiao, chief economist at China Merchants Union Consumer Finance, expects China could implement both a reserve requirement ratio cut and an interest rate cut in the third quarter.
Dong said that if the momentum of the economic recovery weakens at the margin in the second half of the year, policymakers may cut the policy rate by 10 to 20 basis points at an appropriate time.
On the reserve requirement ratio, he said there is still room for a 25 to 50 basis point reduction this year. The timing could come during a peak period of bond supply or when liquidity is relatively tight.
The report also said the People’s Bank of China will make greater use of structural monetary policy tools to strengthen adjustments to market liquidity.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
