Chinese premier Li Keqiang is on the wires
- Will not resort to "flood-like" stimulus
- Urges banks to lend more to support the real economy
- RRR cut in January shows that there is ample room for such cuts
- Financial institutions should offer more credit to small firms
The key comment is the one on the RRR there. Chinese authorities announced a 100 bps cut back in January already and with comments like these, it's basically a hint that they are willing to cut RRR further if need be in order to keep economic growth stable and to boost the domestic economy.
