The People's Bank of China is increasingly likely to cut the RRR the second half of 2021.
Bloomberg report on the analysis from TD:
- “Moderating activity and a likely targeted policy approach mean that a further cut in the reserve-requirement ratio in the second half appears increasingly likely”
Bloomberg go on:
- next window for the People's Bank of China to add to monetary easing appears to be in about two weeks' time, when 700 billion yuan ($108 billion) of medium-term policy loans mature.
- To add accommodation, the authorities may opt to inject more liquidity than the amount coming due, or even go as far as to cut the interest rate on the loans.
Link to the Bloomberg piece is here (may be gated)
