China’s RRR cut won’t spark a ‘risk-on’ environment – yet

21 Feb 2012

China’s decision to cut its reserve requirement ratio (RRR) for the second time in two months may spark a trend of investment into riskier investment products, say analysts.

China’s decision to cut its reserve requirement ratio (RRR) by 50 basis points (bp) has led some industry experts to believe that the market will adopt a ‘risk-on’ mentality, where increased liquidity will boost investment into riskier financial products. Yet, Chinese economists have countered with a ‘wait and ...

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