Zhou Signals China Rate Cut Possible After Injecting Cash
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People’s Bank of China Governor Zhou Xiaochuan said adjustments to interest rates and banks’ reserve requirements are still possible after the central bank stepped up temporary cash injections this month.
“Use of either tool can’t be ruled out,” Zhou said to reporters today in Beijing when asked whether the recent frequent use of reverse-repurchase transactions means the PBOC will make less use of reserve-ratio and interest-rate tools. He didn’t elaborate.