Policy loosening in China has got off to a slow start. The People’s Bank chose not to cut the required reserve ratio (RRR) ahead of the Chinese New Year holiday, confounding widespread expectations. Instead, it helped banks respond to seasonal demand for cash and loans by suspending bill sales and conducting reverse repo operations. The immediate impact was much the same but, by not cutting the RRR, policymakers conveyed the signal that they are in no hurry to loosen.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services