China Central Bank Sees Benchmark Rate Cut As Last Resort, May Use Other Tools: Sources

www.oann.com | 4/3/2014 | Staff
TitanSwimr (Posted by) Level 3
BEIJING (Reuters) – China’s central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, policy sources told Reuters.

But the People’s Bank of China (PBOC) is likely to cut market-based rates and further lower banks’ reserve ratios (RRR) to boost credit growth and reduce firms’ borrowing costs, according to the sources involved in internal policy discussions.

Benchmark - Rate - Cut - Data - Months

“We cannot rule out a (benchmark) rate cut, but we still need to watch economic data for a few months,” one said. “There is no sufficient reason for cutting benchmark rates if we look at the huge amount of new loans in January.”

China’s trading partners and major central banks are increasingly concerned over how quickly the world’s second-largest economy is decelerating, with investors asking if Beijing needs...
(Excerpt) Read more at: www.oann.com
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