Fitch: China's 100bp RRR Cut Marks a Step-Up In Monetary Easing

April 22, 2015 3:38 AM

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(The following statement was released by the rating agency) HONG KONG/SINGAPORE, April 21 (Fitch) The People's Bank of China's (PBOC) 100bp cut to the reserve requirement ratio (RRR), effective on 20 April, marks a step-up in monetary easing from earlier policy measures, says Fitch Ratings.

Fitch estimates that the cut will release CNY1.5trn (USD240bn) in liquidity, lowering borrowing costs and alleviating debt-servicing burdens for corporates, state-owned enterprises and local governments. For banks, the cut will have a moderately positive effect on net interest margins and earnings. ...

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