MNI BRIEF: RRR And Interest Rate Cut Expected: PBOC's Zou

The People’s Bank of China will cut the reserve requirement ratio and the interest rate in a timely manner and ensure ample liquidity in the banking system, while introducing instruments to support key sectors to boost the economy amid tariff tensions with the U.S., PBOC Deputy Governor Zou Lan told reporters on Monday in a briefing.

Authorities will reduce the RRR and the interest rate, aligning with evolving domestic and international economic conditions and financial market dynamics, said Zou, noting the policy toolkit will be enriched to ensure employment, bail out troubled exporters, boost consumption and stabilise market expectations. 

The Bank will direct financial institutions to ensure reasonable financing needs are met for export-oriented small business and to boost service-sector financing, including tourism, sports, education, training as well as catering and hospitality sectors, he added.