Head of Research at UOB Group Suan Teck Kin reviewed the recently announced RRR cut by the PBoC. Key Quotes “PBoC last Friday (3 Apr) announced the third reserve requirement ratio (RRR) of the year, targeting at smaller banks to support small and medium enterprises (SMEs). This comes as no surprise because it was flagged at the State Council meeting just days earlier.” “PBoC also announced the lowering of the interest rate paid on excess reserves to 0.35% from 0.72%. This is the first reduction of since 2008, and the magnitude is also larger compared to the 27bps move twelve years ago. As this rate acts as a lower bound in the interest rate corridor, the latest cut will effectively “force” other interest rates to move lower as well.” “With the COVID-19 pandemic continues to spread outside of mainland China, we see scope for another one to two rounds of RRR cut in the next 3-6 months, along with a gradual decline in the benchmark 1Y loan prime rate (LPR).” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Energy Secretary: Looking for additional oil storage capacities around the country FX Street 2 years Head of Research at UOB Group Suan Teck Kin reviewed the recently announced RRR cut by the PBoC. Key Quotes “PBoC last Friday (3 Apr) announced the third reserve requirement ratio (RRR) of the year, targeting at smaller banks to support small and medium enterprises (SMEs). This comes as no surprise because it was flagged at the State Council meeting just days earlier.” “PBoC also announced the lowering of the interest rate paid on excess reserves to 0.35% from 0.72%. This is the first reduction of since 2008, and the magnitude is also larger compared to the 27bps move twelve… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
