Debate swirls on reserve ratio requirement
By Gao Changxin in Shanghai | China Daily | Updated: 2014-05-28 06:56
There's heated debate in China about whether the government will cut banks' required reserve ratio, which has been steady for 22 months.
If history is any guide, the central bank would have acted already.
Credit growth is weak, the property market appears to be headed toward a correction, and industrial activity is sluggish, all of which points to a stimulus. But the People's Bank of China hasn't moved.
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