People’s Bank of China Governor says room for lower rate

PBOC governor Pan Gongsheng statement:

• monetary policy adjustments should be intensified
• average deposit reserve ratio for Chinese banks is around 6.6%
• compared to central banks in other major economies, this level still leaves room for adjustment

The PBOC won’t ber trimming rates too much, too soon as a falling yuan is still a concern for them.

Earlier:

• China’s efforts to prop up its flagging stock market has made yuan a casualty

A rapidly falling yuan increases the risk of capital flight out of the country.

Pan Gongsheng, People’s Bank of China governor

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