Liquidity issue discussed with banks

The central government convened a meeting involving a number of commercial banks last week to discuss recent liquidity pressure, collecting remarks on further possible moves including the likelihood of lowering the reserve requirement ratio amid market expectations of a further RRR cut, according to sources.

Experts expect the central bank's move to lower bank's reserves may come as early as the second quarter as part of efforts to support growth.

"The central government spoke to major commercial banks last week, trying to assess their liquidity to see what the appropriate steps are," said a source, speaking on condition of anonymity because discussions with the policymakers are private.