PBOC cuts will help maintain stability in the capital market

The People's Bank of China, or the central bank, introduced a targeted cut of the reserve requirement ratio, as well as the third reduction this year of the one-year deposit and lending rates, on Sunday. According to the bank, the reductions are aimed at consolidating the country's moderate rebound in economic growth and to ensure low financing costs for companies. Comments:

In fact, judging by the effects of China's monetary policy and market condition this year, it seems that the central bank's move is of more symbolic than realistic importance, and it is aimed at boosting public confidence in the domestic economy. To some extent, the latest "double cuts" indicate that monetary policy will remain easy, in a bid to support active fiscal policy and further stabilize economic growth within the year.

Southern Metropolis Daily, June 28