Policy loosening in China has got off to a slow start. The People’s Bank chose not to cut the required reserve ratio (RRR) ahead of the Chinese New Year holiday, confounding widespread expectations. Instead, it helped banks respond to seasonal demand for cash and loans by suspending bill sales and conducting reverse repo operations. The immediate impact was much the same but, by not cutting the RRR, policymakers conveyed the signal that they are in no hurry to loosen.