More RRR cuts possible in the future

BEIJING - There is still room for more monetary easing policies, especially reserve requirement ratio (RRR) cuts, in the coming months, a central bank official said Wednesday.

Chen Yulu, member of the Monetary Policy Committee of the People's Bank of China (PBOC), said during an online interview that there was plenty of room for more RRR cuts, citing continuing deflationary risks as an influencing factor.

The consumer price index (CPI), the main gauge of inflation, averaged 1.2 percent year on year in the first three months (Q1) of 2015, the lowest since the fourth quarter of 2009.

Producer prices, a measure of costs for goods at the factory gate, also dropped 5.6 percent year on year, data from the National Bureau of Statistics showed.

Ongoing deflationary risks indicate a high possibility of more loosening measures in the future, Chen said.

RRR remains high at 18.5 percent, presenting enough room for further cuts.

Given the persistent downward pressure on the economy, with growth slowing to 7 percent in Q1, the lowest rate since 2009, Chen expects more RRR cuts in the future.