China: the many policy levers of the PBOC
April 20, 2015
Over the weekend the PBOC reduced the Reserve Ratio Requirement (RRR) for banks by more than most analysts had expected. For those unfamiliar, RRR are the fraction of bank deposits that must be deposited with the central bank; in this case the PBOC. RRR’s can be used as a monetary policy leaver, as increasing (reducing) … More China: the many policy levers of the PBOC