The latest in the series of 'there isn't an RRR cut coming' comments from China was just today

  • PBOC's Zhang: China will not cut RRR for the time being

I posted on it earlier too, tongue-in-cheek:"Dear John" letter from China president Xi Jingping ... RRR cut ... its over :-(

The latest Bloomberg survey of economists shows that they're still expecting cuts (I must admit, me too). What the 'consensus' is looking for:

  • The PBOC will lower banks' reserve required ratio to 17% in Q1
  • And to 16.5% in Q2
  • Seen at 15.5 by the end of 2016

(The RRR is currently at 17.5% for the largest lenders)

More:

  • Forecasts the deposit rate seen is at 1.25% in Q2 (from 1.5% at present)
  • Forecasts for the lending rate is 4.1% (from 4.35% now)
  • GDP forecast is at 6.5%