Estimate of the likely PBoC move is an RRR cut of 25 basis points for all banks

A senior economist at Postal Savings Bank of China says he thinks the People's Bank of China may cut the RRR for all banks by 0.25 percentage points

• The reduction in the cash amount banks must hold in reserve is expected to free up about 550 billion yuan ($77 billion) in long-term liquidity.
• "Using RRR cuts, China will not only encourage banks to step up support for the real economy, but also lower their borrowing costs, thus helping banks to surrender part of their profits to support the real economy. The long-term funds freed by the reduction is also conducive for banks to provide long-term financing for the economy,"

Further, a senior researcher at the Zhixin Investment Research Institute, said COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term cases have resurged in a number of Chinese cities this month, and this has affected the recovery of the real economy to some extent.

• "As demand is still insufficient and market sentiment Market Sentiment Market sentiment is a psychological attitude that captures the mood and attitude of investors, usually towards a specific security or asset. This sentiment can be segregated into a bullish or bearish mood in the market. As such, certain trading activity or price behavior will also impact market sentiment.For example, bullish sentiment indicates a growth in the price of securities, whereas a bearish sentiment sees falling prices. Many traders use broader market sentiment or sentiment data to hel Market sentiment is a psychological attitude that captures the mood and attitude of investors, usually towards a specific security or asset. This sentiment can be segregated into a bullish or bearish mood in the market. As such, certain trading activity or price behavior will also impact market sentiment.For example, bullish sentiment indicates a growth in the price of securities, whereas a bearish sentiment sees falling prices. Many traders use broader market sentiment or sentiment data to hel Read this Term is unstable, it is necessary for China to take measures like cutting the RRR to send a positive signal for the economy, boost financial market confidence, maintain market stability, and create a favorable financial environment for economic stabilization and recovery," Wang said.

Info comes via China. org.

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Momentum appears to be building to an inevitable cut.