‘There is still room to cut the reserve ratio further’ – PBoC’s Chen

FXStreet (Mumbai) - In an online interview today, People's Bank of China (PBoC) academic advisor Chen Yulu stated that doors are open for further cuts to the reserve requirement ratio (RRR).

Chen quoted, “Given the current level of the consumer-price index and the overall economic situation, there is still room to cut the reserve ratio further.”

On April 19, the PBoC cut the reserve requirements for commercial banks in the country by 100 basis points, bringing it to 18.5% from the previous 19.5% with effect from April 20.