Analysts at TD Securities points out that today, PBoC announced a 0.5% cut of the Reserve Requirement Ratios (RRRs) for banks on 15 January, followed by another 0.5% cut on 25 January.
Key Quotes
“The total 1% cut will release RMB 800 bn of liquidity, according to the PBoC, ahead of the Chinese New Year. The PBoC also mentioned that today’s RRR cut is still “targeted” easing and the “prudent monetary policy stance hasn’t changed.” A cut was widely expected in the wake of weak data and strongly hinted at by Premier Li prior to the PBoC announcement.”
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