People’s Bank of China Governor says must support steady recovery of prices, economy

People’s Bank of China Governor Pan Gongsheng:

• must coordinate monetary and fiscal policies
• must support steady recovery of prices in the economy
• by year end we might cut RRR rate further
• after RRR cut financial weighted ratio for large banks will be reduced to 8%
• MLF will be lowered by 0.3%
• LPR will be lowered by 0.2 to 0.25%

Earlier:

• PBOC and other senior economic officials press briefing underway
• People’s Bank of China will soon cut reserve requirement ratio by 50bp
• People’s Bank of China will soon cut 7-day reverse repo to 1.5% from 1.7%

Chinese stock markets have run higher on the promises of cuts to come.

China’s securities regulator CSRC says it will issue guidance for medium and long-term funds to enter the A-share market and to support mergers and acquisitions.

This article was written by Eamonn Sheridan at www.forexlive.com.