China still has room for further reserve requirement ratio cuts

According to a report on the website of Singapore's Lianhe Zaobao on December 14, officials of the People's Bank of China said that China still has room to further reduce the RRR at the current average deposit reserve ratio of 6.6%

According to reports from Chinese media, Wang Xin, Director of the Research Bureau of the People's Bank of China, said at the 2024-2025 China Economic Annual Meeting on the 14th that next year, we will moderately increase the support for aggregate and structural monetary policies, timely reduce reserve requirements and interest rates, and increase the supply of monetary credit

When discussing the specific considerations for implementing monetary policy in the next stage, Wang Xin said that efforts should be made to increase the overall amount, fully meet the demand for effective funds, and promote the full flow of funds to the real economy. In terms of liquidity, the current average reserve requirement ratio in China is 6.6%, and there is still room for further reserve requirement ratio cuts

The Central Economic Work Conference clearly proposed that next year we should increase the fiscal deficit rate, issue more treasury bond and special bonds of local governments, and cut reserve requirements and interest rates in due course

Han Wenxiu, Deputy Director in charge of daily work of the Office of the Central Committee for Finance and Economics, said at the annual meeting on the same day that China will smoothly achieve its main expected goals for economic and social development. It is expected that China's economy will grow by about 5% this year, contributing nearly 30% to global economic growth; Employment and prices remain stable, international balance of payments is basically balanced, and the country's foreign exchange reserves remain above 3.2 trillion US dollars