PBOC Seen Delaying Reserve Ratio Cut After $233 Billion Cash Injection Last Month
- Central bank is expected to reserve RRR cut to counter tariffs
- Currency, bond yield concerns likely contributed to the delay
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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China’s central bank injected massive liquidity into the market at the end of 2024 without using high-profile stimulus, as officials preserve policy space before US President-elect Donald Trump returns to office.
The People’s Bank of China previously flagged it could free more cash for banks by cutting the reserve requirement ratio again one more time by the end of 2024. It’s now expected to make that move in the first quarter of this year, keeping officials’ powder dry on a closely-watched tool that could alleviate the negative impact from fresh US tariffs.