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Monetary policy remaining tight despite RRR cut

The People’s Bank gave its devotees a twinge of nostalgia on Saturday as it announced a cut to reserve requirements out of office hours and at the start of a national holiday in China. This was how monetary policy announcements used to be made. But the financial system has changed and, with it, the way the PBOC operates. Despite the similarities for those with disrupted holiday plans, Saturday’s announcement did not signal that policy was being eased.

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