Published on Wednesday, January 17, 2018 | Updated on Sunday, May 13, 2018

China | The changing role of RRR in new monetary policy framework

Summary

The recent two unconventional RRR cuts suggest the authorities set out to dethrone RRR from a monetary loosening or tightening tool. Instead, the PBoC now uses RRR cuts for liquidity management purpose. As monetary policy framework is migrating to a “corridor system”, the traditional quantitative tools adjustments have to give their way to new price tools.

Geographies

Authors

Jinyue Dong BBVA Research - Senior Economist
Le Xia BBVA Research - Chief Economist

Documents and files


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Report (PDF)

edited_201801_China_RRR_monetary-policy_edi

English - January 17, 2018

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