China | The changing role of RRR in new monetary policy framework
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.
Topics
- Topic Tags
- Regional Analysis China
- Macroeconomic Analysis
Authors
Jinyue Dong
BBVA Research - Senior Economist
Le Xia
BBVA Research - Chief Economist
Documents and files
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