Search ForexCrunch

The highly read Chinese publication, Global Times, is out with an editorial piece after the People’s Bank of China (PBOC) announced a cut to reserve requirement ratio (RRR) on Monday.

Key Quotes:

“China’s room for loose monetary policy is expanding as major restricting factors are greatly reduced –

  • the rising price of pork has started to fall as production recovers
  • yuan’s downtrend has been reversed since China and the US made interim progress in their trade talks
  • China has made progress in mitigating financial risks

The PBOC is expected in 2020 to inject more liquidity into the market through various policy tools within the normal space.” 

  • China: PBoC retains flexibility for its next move after RRR cut – ANZ
  • USD/CNH struggles amid PBOC’s RRR cut, soft China Caxin PMI