摘要
OPINIONWhy We Want RRR CutsThe People＇s Bank of China, the central bank on April 20 initiated the second reserve re- quirement ratio （RRR） cut in 2015, which-- though coming as no surpdse has extended beyond market expectations in terms of force and scope. The move will undoubtedly give the slowing economy a leg up.
The People’s Bank of China,the central bank,on April 20 initiated the second reserve requirement ratio(RRR)cut in 2015,which—though conning as no surprise—has extended beyond market expectations in terms of force and scope.The move will undoubtedly give the slowing economy a leg up.In the first quarter,while the amount of new loans continued to increase,the total social financing a broad measure of liquidity in the economy,decreased compared with the same period of last year,indicating that the financial industry failed to fully support the real economy.Deposit growth continued to decelerate,1.6 trillion yuan($257.92billion)less than that in the first quarter of last year Funds outstanding for foreign exchange reserves also dropped by 222.5 billion yuan($35.87 billion)in the first quarter Meanwhile,at the end of March,broad money suppty(M2)increased by 11.6 percent 0.4 percentage points shy of the annual target In most cases,when downward economic pressure mounts,the growth of M2 needs to be properly jacked up to realize counter-cyclical adjustment.Moreover,since China is likely to face a capital outflow in
