China official urges cut to required reserve ratio

Beijing

CHINA'S requirement for how much cash banks must hold as reserves is "very high" and should be reduced at an "appropriate time," a senior banking regulator said, according to a media report.

Other financing tools can be used to manage the money supply after easing the required reserve ratio (RRR), China Banking Regulatory Commission official Yu Xuejun said at an event in Beijing, Shanghai Securities News reported on Wednesday. New monetary tools such as the medium-term lending facility are best used after a cut, not before, Mr Yu was cited as saying.