Easing Train Keeps Rolling

The PBOC continued its monetary easing efforts with a substantial 100 bps cut to banks’ required reserve ratios (RRR) at the end of the National Day holiday week. The move reinforces the divergence between US and Chinese monetary policy trajectories, adding to depreciation pressure on the currency. The fourth RRR adjustment this year should help to stabilize credit growth and overall activity later this year and early in 2019.

Posted October 19, 2018
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