News Headline Summary

Market talk that PBoC is reluctant to cut RRR due to fears of asset price inflation going into real estate speculation - Unconfirmed

‘Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Update details:

- Talk suggests this fear could lead to popular discontent over being priced out of affordable housing market.

- As yet, the think tank reports remains unsubstantiated. The PBoC have halted the speed of the RRR's decline, and have favoured reverse-repo operations as a form of ensuring liquidity in the local market over the past 6 months, despite multiple calls to ease further.

Print 15:50, 05 Dec 2012 - Economic commentary - Source: Hammerstone