China Central Bank To Use Tools Such As Reserve Requirement Ratio (RRR) To Tackle Economic Woes
Portfolio Pulse from Benzinga Newsdesk
China's central bank plans to use tools such as the Reserve Requirement Ratio (RRR) to address economic challenges. This move could impact the financial sector and the overall economy.
July 14, 2023 | 7:14 am
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The use of tools like RRR by China's central bank could impact the performance of the iShares China Large-Cap ETF (FXI), which tracks the Chinese market.
The Reserve Requirement Ratio (RRR) is a key monetary policy tool. Changes in the RRR can impact liquidity in the market, affecting the performance of stocks and ETFs like FXI that track the Chinese market. Given the current economic challenges, this move could potentially lead to a decrease in the value of FXI in the short term.
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