China’s central bank reiterates it will maintain appropriate liquidity and enhance the financial sector’s ability to serve the economy. The People’s Bank of China summarized Thursday its first-quarter policy meeting, that it will advancing interest rate liberalisation and currency reforms.
There is market speculation the PBOC may cut reserve requirements to help growth. Thursday’s statement seems to signal the central bank is firm on keeping its prudent monetary policy. Analysts say that as market liquidity is appropriate now, the PBOC will likely conduct open market operations rather than cut the reserve requirement ratio.
