China Securities Journal reported early Thursday that the People’s Bank of China may decrease its Reserve Ratio Requirement (RRR) rate in September, citing an expert.
According to the Chinese media outlet, this initiative is considered as beneficial to the economy.
Earlier this week, China’s State Council offered more support for the real economy while also hinting at the possibility of RRR cutbacks at a later date.
The yield on China’s 10-year government bonds has fallen to 3.037 percent, the lowest since August 26 2020, amid increased talk of rate cuts.
Meanwhile, amid risk aversion, the USD/CNY has recovered from its daily lows of 6.4727 and is now trading at 6.4736, essentially flat on the day./n
