Editor's note: Guan Tao is the global chief economist at BOC International (China). The views don’t necessarily reflect those of China Daily.Note: This article was published in China Daily.With a liquidity injection of 559 billion
yuan ($81.59 billion) via one-year medium-term lending facility loans so far
this year and the comments made by Yi Gang—governor of the People’s Bank of
China, the central bank—before the two sessions saying that “the current level
of some key variables concerning monetary policy is appropriate”, the market
actually had weaker expectations for cuts in the reserve requirement ratio over
the short term. But under such a scenario, the PBOC announced on March 17 an
RRR cut of 0.25 percentage point for financial institutions starting today. The
latest move was somewhat unexpected for many, though it is a move that makes
sense in several aspects.Key stabilizing moveBoth the Central Economic Work Conference
at the end of last year and the GovernmentW
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