Monetary Policy Stimulus May Be in the Cards, PBOC Report Suggests

(Bloomberg) — The People’s Bank of China hinted Monday it will keep monetary policy supportive, prompting predictions it may cut the reserve requirement ratio for banks or lower interest rates in coming months.

The People’s Bank of China (PBOC) pledged in its quarterly monetary policy report to keep the overall amount of money supply and credit in the economy “appropriate,” a slightly more dovish sign. It also dropped the phrase of “not flooding the economy with stimulus” for the first time in more than a year.