China Press: PBOC may reduce required bank reserves in H2 2016 but a rate cut is unlikely

China Daily reported on Monday citing Wang Jun, a senior economist at the China Center for International Economic Exchanges, a government think tank, China may reduce required bank reserves in the second half but a cut in the interest rate is unlikely because it won't help with the housing bubble.

The official newspaper further reported Wang as saying; policymakers should do more to deal with heightened deflation pressure rather than worrying about inflation.