China’s Central Bank Vows to Use Policy Tools, Including RRR

The People’s Bank of China will use its policy toolbox flexibly as it aims to ensure sufficient liquidity in the economy, a senior central bank official said, adding hundreds of billions of yuan will be earmarked for two new structural lending programs.

“Downward pressure on the economy has increased currently,” Sun Guofeng, head of the monetary policy department, said at a briefing Thursday. “We will use monetary policy tools including reserve requirement ratio reduction at the proper time” and keep liquidity “reasonably ample,” he said, referring to the amount of cash banks must keep in reserve.