BEIJING (Reuters) – China has room to make further cuts in its reserve requirement ratio, with the average reserve requirement ratio now standing at 6.6 percent, a central bank official said on Saturday, according to state broadcaster CCTV.
China said this week it would raise the budget deficit, issue more debt and ease monetary policy to maintain a stable economic growth rate.
The People's Bank of China has been steadily cutting interest rates and pumping liquidity this year as authorities make efforts to meet the official economic growth target of around 5%.
Interest rates should be strengthened to facilitate transmission and guide overall social financing costs toward a steady decline, Wang Xin, director of the People's Bank of China Research Office, said in remarks on specific considerations for the next phase of China's monetary policy implementation.
“As the People's Bank of China's exploration of buying and selling government bonds in the secondary market becomes more mature, the central bank in the future should use a variety of monetary policy tools to provide sufficient liquidity in the medium and long term and maintain sufficient liquidity in the banking system,” Wang said. At an economic conference.
