Central Banks
China’s Central Bank Outlook Spurs Call for Monetary Action
- PBOC says it will keep money supply and credit ‘appropriate’
- Goldman Sachs expects RRR cut, Citigroup sees possible easing
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The People’s Bank of China hinted Monday it will keep monetary policy supportive, prompting expectations it may cut the reserve requirement ratio for banks or lower interest rates in coming months.
The central bank pledged in its quarterly monetary policy report to keep the overall amount of money supply and credit in the economy “appropriate,” a slightly more dovish sign. It also dropped the phrase of “not flooding the economy with stimulus” for the first time in more than a year.