China Hints at More Monetary Easing to Spur Lending and Economic Growth
-
China's central bank hinted at further policy easing, including potential reserve requirement ratio (RRR) cuts to boost lending capacity.
-
Policymakers aim to provide strong support for reasonable credit growth using various monetary policy tools.
-
Markets expect more loosening ahead after significant liquidity injections last month.
-
An RRR cut may not be enough to meaningfully turn around weak confidence and stagnant growth.
-
Fiscal stimulus is seen as more effective than monetary easing to lift growth, but was weak last year due to limited land sale revenue.