The $457 Billion Reason for China to Cut Reserve Ratio Again
- The amount of MLF due will rise in the second half of 2018
- PBOC to act in July on tax payments, loan maturity: StanChart
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The case for the People’s Bank of China to cut the amount of cash lenders are required to hold is getting stronger.
Chinese banks racked up 2.93 trillion yuan ($457 billion) in medium-term loans extended by the PBOC scheduled for repayment during the rest of 2018. That has prompted some analysts to raise bets the PBOC may soon repeat a tactic used in April: cutting the Reserve Requirement Ratio to hand lenders liquidity so they can pay back the debt.