PBOC Likely to Postpone Reserve Ratio Cuts Following Massive Cash Infusion

Reported 3 days ago

The People's Bank of China (PBOC) is expected to delay any cuts to the reserve requirement ratio (RRR) after injecting 1.7 trillion yuan (about $233 billion) into the market in December 2024. This move was made to maintain liquidity without using major stimulus measures, as officials look to preserve options amid potential US tariffs. Although the economy is showing signs of recovery, uncertainties remain, prompting analysts to speculate that any RRR cuts may occur in the first quarter of 2025, particularly before the Lunar New Year.

Source: YAHOO

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