Bloomberg News

CICC Says It’s ‘Inevitable’ China Will Cut Bank Reserve Ratios

February 07, 2012

Feb. 7 (Bloomberg) -- China needs to cut lenders’ reserve- requirement ratios “several times” this year as the central bank’s increased use of reverse-repurchase agreements isn’t a substitute for tackling structural liquidity shortages, according to China International Capital Corp.

A cut in reserve ratios is “inevitable,” Wensheng Peng, economist at CICC, said in a report dated today.

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net


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