BEIJING (Reuters) – China has an opportunity to further reduce its reserve requirement ratio, as the RRR is now at 6.6%, a central bank official said on Saturday, according to CCTV radio station.
China said this week it would increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate.
The People’s Bank of China has slowly cut interest rates and introduced monetary stimulus this year as authorities have made efforts to meet the official target of economic growth of around 5%.
The interest rate should be strengthened in order to facilitate the transfer and to direct the total cost of public finance to a further decline, the director of the research center of the PBOC Wang Xin commented on some considerations for the next phase of the implementation of China’s monetary policy.
“As the PBOC’s research on buying and selling government bonds in the secondary market matures, the central bank should in the future use various monetary policy tools to provide sufficient funds in the medium and long term and maintain sufficient funds in the banking system. ,” Wang said at an economic conference.
(This story has been refiled to say cut, not cut, in the title and to remove extraneous words in paragraph 1)
