China Securities Journal with the opinion piece:
- China has the policy space to lower the RRR
- China has policy space to lower interest rates
- There is also room to lower rates to the property sector
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China has already lowered rates to first home buyers:
The next interest rate setting from the People's Bank of China is on January 20, 1- and 5-year loan prime rate (LPR) settings. Ahead of that will be extra injections of liquidity via open market operations (OMO), and perhaps even a medium-term lending facility (MLF) into Chinese New Year holidays (commencing January 21). Current LPRs are:
- 3.65% for the one year
- 4.30% for the five year
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RRR is Reserve Requirement Ratio, the amount of cash that banks must hold as reserves. A cut to the RRR frees funds for lending into the system.
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Coming up later from China:
