More on PBOC cash injections, use of other tools, could substitute for RRR cut

Reuters with more on the huge liquidity injection from the People’s Bank of China today

• People's Bank of China chief economist Ma Jun was quoted in China Business News as saying the liquidity injections could "imply a substitute for a cut in banks' reserve requirement ratios (RRR)"
• PBOC is also injecting cash via three policy tools of the standing lending facility (SLF), medium-term lending facility (MLF) and pledged supplementary lending (PSL)
• Analysts said the amount of cash to be injected is equivalent to a 50-basis points in RRR
• The loans via SLF and MLF are shorter maturity, while cutting RRR would release long-term money

More:

"If we use the tool of cutting banks' reserve requirement ratios (RRR) too frequently, it would pose big downward pressures on short-term interest rates, which is not conducive for stabilising capital flows and exchange rates"

via Reuters