I posted earlier: China press: The RRR cut is not a sign of large-scale stimulus
More from the Xinhua commentary now (this is via MNI):
- The PBOC's reserve requirement ratio cut, which took effect on March 1, is not a signal of any coming large-scale stimulus
- The move indicates that China's monetary policy is "prudent" with a slight easing bias
- China still has room for further monetary policy actions, and the fundamentals of the Chinese economy remains good in the long term and so China will not introduce any stimulus programs on a large-scale
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MNI have still more, this time from an Economic Information Daily commentary:
- The deposit reserve requirement ratio cut announced by the PBOC was aimed at stabilizing economic growth and offsetting tight liquidity conditions instead of intentionally trying to boost the stock and property markets
- The move was also in accordance with the current "prudent" monetary policy with a slight easing bias
- However, deepening structural reforms are still key in dealing with the economic challenges of the medium-long term
