PBOC governor hints at further monetary steps

Governor of the People's Bank of China Zhou Xiaochuan Wednesday said cuts in reserve requirements and interest rates are still possible after recent cash injection to the banking system.

Use of any monetary tools "cannot be ruled out," Zhou said in Beijing when asked whether the central bank will make less use of reserve ratio and interest rate tools after recent frequent reserve repurchase deals.

The central bank on Tuesday injected 220 billion yuan (US$34.6 billion) to the banking system through reverse repurchase agreements, the largest daily amount since May, tempering speculation the reserve requirement ratio will be cut.