Analysts guessing over central bank's next move

Reasonably adequate liquidity, prudent monetary policy are needs of the hour

Debates on whether the central bank needs to further ease monetary policy or not are continuing among analysts, with their emphasis on guessing the next liquidity injection through reducing banks' reserved deposits.

Supporters of monetary easing expect that another cut in the reserve requirement ratio (RRR) may come no later than this week, as a liquidity shortage may occur after commercial banks pay back 366.5 billion yuan ($54.65 billion) to the central bank on Wednesday. That amount of interbank lending was conducted previously under the medium-term lending facilities (MLF) scheme.