BEIJING (dpa-AFX) - Amid growing calls for policy easing to spur economic growth, a central bank official said the bank has room to cut the reserve requirement ratio.
Zou Lan, head of the People's Bank of China's monetary policy department, said the average RRR for financial institutions is around 7 percent. 'So there is some room' to lower the ratio, said Zou.
The RRR represents the amount of cash that banks must hold as reserves.
This year the central bank had reduced its short-term policy rates as well as benchmark lending rates to strengthen counter-cyclical adjustments to better support the real economy.
Zou said there are certain constraints on cutting deposit and lending rates further.
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