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Now that the RRR is out of the way, what specific policies should investors expect in the days ahead?
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The RRR is the ratio of the amount of reserves added in a year divided by the amount extracted in that year.
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All companies try to maintain an RRR of more than 100%, as that indicates a stable supply of oil for them in the long run.
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The RRR cut was also a part of a global central bank coordination to make sure there was enough liquidity in the system, says John.
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Over the past three years, China has been raising the RRR to curtail loan growth, and this cut is the first step to promoting loan growth.
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At the same time, the PBoC has eased reserve requirement rations (RRR) and could probably do so twice more this year, and pushed commercial banks to lend.
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Known as RRR (Ramon R. del Rosario), this Harvard M.
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Easing in China is expected to continue through 2012, with ISI Group anticipating a potential RRR cut after Chinese New Year celebrations in February, then possibly again in April, June and August.
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