Governor Yi defends PBoC’s easing measures

Cut in reserve requirements calibrated so as not to undermine deleveraging, says Yi Gang

yi-gang-deputy-governor-pboc-director-safe
Yi Gang: China’s financial system is “generally sound”, but there are “many uncertainties”

People’s Bank of China (PBoC) governor Yi Gang has defended its efforts to ease monetary conditions cautiously.

Speaking to reporters on January 9, Yi said a recent cut to the reserve requirement ratio (RRR) had been pitched carefully to avoid “excessive credit contraction”, but also to avoid “flooding” the economy with liquidity, which could impair efforts to deleverage.

The PBoC unveiled the cut on January 4, in the latest of a series of such moves. The 1 percentage point reduction brings

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