PBOC Trims Reserve Requirements: Delivers Wet Noodle after Earlier Disappointment

<div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLTHLKsj7cY7dD2k99FNO4BCFKs8CxHivZrMt1lm5MNhMlsQnJ5HHN8bQMcgYo86eZaYiABZ7L-x5hZSnygvG1BvxWQzHubeSKrzFNqtQZrnhM9c7b5ZlH8hXYvKoZOIVBGa_HQx85Os7Lq5jFVInGDO0jH9AewDysupbrE29fRY3JTg4myBD4FfOm1A/s356/CNY.PNG"><img alt="" border="0" data-original-height="249" data-original-width="356" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLTHLKsj7cY7dD2k99FNO4BCFKs8CxHivZrMt1lm5MNhMlsQnJ5HHN8bQMcgYo86eZaYiABZ7L-x5hZSnygvG1BvxWQzHubeSKrzFNqtQZrnhM9c7b5ZlH8hXYvKoZOIVBGa_HQx85Os7Lq5jFVInGDO0jH9AewDysupbrE29fRY3JTg4myBD4FfOm1A/s400/CNY.PNG" width="400" /></a></div><p><b>After posting the <a href="http://www.marctomarket.com/2022/04/good-friday.html" target="_blank">daily analysis</a>, the PBOC announced a 25 bp cut in required reserves.&nbsp;</b> This is said to free up around CNY530 bln or around $83 bln.&nbsp; It may help explain the failure to cut the benchmark Medium-Term Lending Facility.&nbsp; &nbsp;Some rural banks may see a 50 bp cut in reserve requirements.</p><p><b>It seems like it is too small of&nbsp; move to satisfy expectation or address the growing economic challenges.&nbsp;</b> More monetary and fiscal stimulus will be necessary to help offset the economic crunch from the Covid-lockdowns and disruptions.&nbsp; &nbsp;The dollar firmed slightly against the offshore yuan (CNH) but remains softer on the day.&nbsp;&nbsp;</p><p><span>Disclaimer</span></p><p><br /></p><p><br /></p><p><br /></p><div>
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