March 20, 2020 / 5:44 AM / 19 days ago

China has room to further cut RRR, make adjustments: central bank adviser

FILE PHOTO: A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, April 3, 2014.REUTERS/Petar Kujundzic

SHANGHAI (Reuters) - China’s central bank has relatively big room to cut the amount of cash commercial banks must hold as reserves and make targeted adjustments to the reserve requirement ratio (RRR), a central bank adviser said on Friday.

State-run Shanghai Securities News published the comments of Ma Jun after China kept unchanged a benchmark lending rate, defying expectations for a cut, with the economy jolted by the coronavirus pandemic.

Ma added that a temporary steady Loan Prime Rate (LPR) fixing did not mean lending rates to the real economy were kept unchanged.

The central bank could ramp up open market operations if necessary, Ma said.

Reporting by Winni Zhou and Beijing Monitoring Desk; Editing by Clarence Fernandez

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