The Chinese government will make timely reductions in interest rates and the reserve requirement ratio for banks, Yicai Global reported Wednesday, citing an announcement by Premier Li Qiang.
The policy is a change from the country's "prudent" monetary stance for the last 14 years, the report said.
Li called for an easing of monetary policy "as early as possible, better late than never," the report said.
The pace of monetary easing could hasten, including the reductions in borrowing costs and share of deposit reserves in banks, Yicai said, citing Citic Securities (HKG:6030, SHA:600030) Chief Economist Ming Ming.
Factors such as a weak renminbi, narrower interest margins, and a need for more currency circulation have constrained Beijing's monetary policy, the report said.
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