PBOC may reduce RRR to boost economic growth amid limitations on deposit and lending rate cuts.

The People's Bank of China (PBOC) may lower the reserve requirement ratio (RRR) from its current level of 7% to support economic growth. However, constraints such as narrowing bank profit margins and shifts in deposit flows could limit cuts to deposit and lending rates. The PBOC aims to utilize various monetary policy tools to enhance money and credit growth while focusing on domestic economic conditions and lowering financing costs.

September 05, 2024
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