FW: RMB Watch: Liquidity Support May Not Hurt RMB

 

 

Liquidity Support May Not Hurt RMB RMB Watch by Saktiandi Supaat FX Research The amount of MLF due in the second half of this year is rather substantial and that could invite another RRR cut. However, the expansion of the PBoC collateral list to include lower rated bond underscores the variety of tools that PBoC has to support small and medium enterprises. The move also seems to suggest that PBoC is open to address structural credit deficiency with structural reforms. This also suggests that the central bank will not have too many RRR cuts in the next half of the year... Saktiandi Supaat     (65) 6320 1379     saktiandi@maybank.com.sg Fiona Lim     (65) 6320 1374     fionalim@maybank.com.sg Disclaimer This message is intended only for the use of the person to whom it is expressly addressed and may contain information that is confidential and legally privileged. If you are not the intended recipient, you are hereby notified that any use, reliance on, reference to, review, disclosure or copying of the message and the information it contains for any purpose is prohibited. If you have received this message in error, please notify the sender by return e-mail immediately and delete all its contents. If you wish to read Disclaimer in details, please click HERE. To unsubscribe or change preference settings, please click here to contact your representative.