The Straits Times
Published on Dec 31, 2012

China should cut RRR, widen yuan band in 2013: Top government adviser


BEIJING (REUTERS) - China should cut banks' reserve requirement ratios (RRR) in 2013 to support economic growth while widening the yuan's floating range to make it more flexible, the head of the cabinet's think-tank said in comments published on Monday.

Chinese leaders have promised to maintain a prudent monetary policy and pro-active fiscal policy in 2013, leaving room for manoeuvre in the face of global economic risks while deepening reforms to support long-term growth.

"We should keep appropriate base money growth through various measures, cut RRR at the proper time based on changes in monetary conditions," the China Securities Journal quoted Mr Li Wei, head of the Development Research Centre, as saying.

Mr Li is a top government adviser and it is unclear if his views will be heeded by policymakers.