Four cuts in the reserve requirement ratio (RRR) this year has so far failed to prop up China's credit growth. Its financial condition weakened further in October. The M2 money supply grew at a record low pace and the growth of M1 hit the second-lowest in history and the overall credit expansion slowed sharply, pointing to a further deceleration in the world’s second-biggest economy.
That makes many believe China is likely to cut RRR further and it could happen as soon as this quarter.
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