---
title: "Experts expect that China may still lower the reserve requirement ratio and interest rates within the year, with a reduction in the reserve requirement ratio likely being preferable to a rate cut"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/257988302.md"
description: "Experts expect that China may lower the reserve requirement ratio (RRR) and interest rates within the year, with RRR cuts being preferable to interest rate cuts. As the Federal Reserve lowers interest rates, the external pressure on China's monetary policy has weakened, expanding the operational space. Analysts believe that considering internal constraints such as bank interest margins, the People's Bank of China may lower the RRR by 0.25 to 0.5 percentage points in the third or fourth quarter to optimize liquidity structure. At the same time, with economic development facing challenges, the necessity for \"timely strengthening\" of policies and the possibility of interest rate cuts have increased"
datetime: "2025-09-18T23:56:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/257988302.md)
  - [en](https://longbridge.com/en/news/257988302.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/257988302.md)
generator: "portal-rs"
---

# Experts expect that China may still lower the reserve requirement ratio and interest rates within the year, with a reduction in the reserve requirement ratio likely being preferable to a rate cut

According to the Shanghai Securities Journal, as the Federal Reserve resumes interest rate cuts, the external constraints faced by China's monetary policy are weakening. The operational space for monetary policy is widening, and its autonomy is expected to further enhance. Analysts predict that there may still be a possibility of reserve requirement ratio (RRR) cuts and interest rate reductions within the year, but considering internal constraints such as pressure on bank interest margins, RRR cuts may be preferable to interest rate cuts. Dong Ximiao, chief researcher at Zhangle, expects that in the third and fourth quarters, the People's Bank of China may cut the RRR by 0.25 to 0.5 percentage points, timely injecting long-term liquidity into the market and further optimizing the liquidity maturity structure. Xiong Yuan, chief economist at Guosheng Securities, believes that the current economic development still faces challenges, indicating an increased necessity and possibility for policy "timely strengthening," and the likelihood of interest rate cuts in the fourth quarter is also rising

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**