Economists Expect PBOC to Accelerate Easing of Bank Reserve Policy

(Bloomberg) ― China’s central bank is likely to cut the reserve requirement ratio for major banks earlier than expected as the economic recovery loses steam, according to the latest Bloomberg survey of economists.

The People’s Bank of China (PBOC) is expected to cut the ratio — or the amount of cash banks have to keep in reserve — for major lenders by 25 basis points, or 0.25 of a percentage point, by the end of the third quarter, according to the median of forecasts. Economists earlier predicted a cut in the final three months of the year.