China c.bank says RRR cuts, other policy tools need to be used flexibly

BEIJING: Reserve requirement ratio (RRR) cuts, open market operation and all structural monetary policy tools need to be used flexibly to ensure reasonably ample liquidity in the banking system, an official with China's central bank said on Friday.

The central bank will guide banks to effectively adjust interest rates on outstanding mortgages and support banks to reasonably control cost of liabilities, Zou Lan, head of the monetary policy department at the People's Bank of China (PBOC), told a press conference in Beijing.

The PBOC will strengthen counter-cyclical conditions and policy reserves and ramp up macro adjustments, according to Zou. - Reuters