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China tweaks reserve ratio tool, fewer cuts seen likely

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The change is part of a broader shift towards more flexibility with policy tools as China tries to balance economic reforms with propping up growth. Central bank researchers have advocated setting up an interest-rate target similar to what the US Federal Reserve has used.

Beijing

AS investors continue to grapple with China's economic slowdown, regulators may be taking away an old standby for monetary easing.

The required reserve ratio for commercial banks, a tool long used to add or remove liquidity, will increasingly be used instead as a lever for