MNI BRIEF: China Politburo Call For RRR And Interest Rate Cuts

China will take further measures to stimulate the economy, stabilize equity and real estate markets and defuse risks from local government debt, according to the latest Politburo meeting chaired by President Xi Jinping on Friday. 

A statement on Xinhua News Agency noted that the meeting called for the People’s Bank of China to timely reduce reserve requirement ratio and interest rates while ensuring ample liquidity. Fiscal authorities should speed up the issuance and utilization of local government special bonds and ultra-long-term special government bonds, Xinhua noted. (See MNI PBOC WATCH: PBOC Seen Easing, Guiding LPR Lower, In Q2)

New targeted monetary tools and policy-based financial instruments should be introduced to support technological innovation, expand consumption, and stabilize foreign trade, the meeting asked. It called for intensified efforts in urban renewal and promotion of urban village and dilapidated housing renovation, with optimization of policies for purchasing existing commercial housing,  to further stabilize the real estate market.