China Seen Cutting Banks’ Reserve Ratio in August to Add Cash
- 400 billion yuan worth of policy loans come due this month
- Analysts cite looming ‘liquidity gap’ as reason to trim RRR
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China’s central bank may cut the reserve-requirement ratio for major banks as soon as this month in an effort to boost lending and revive momentum for the economic recovery.
That’s according to several analysts who’ve pointed to the mounting value of policy loans maturing this month and through the rest of the year as reason for the People’s Bank of China to unleash more liquidity.