China to use RRR cuts to help reduce funding costs for small firms - Premier Li

FILE PHOTO: Chinese Premier Li Keqiang speaks at a news conference following the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 15, 2019. REUTERS/Jason Lee

DALIAN, China (Reuters) - China will make cuts in banks’ reserve requirement ratios and seek to lower real interest rates to help reduce funding costs for small firms, Premier Li Keqiang said on Tuesday.

China’s economy is facing new downward pressure, Li said.

But China will keep monetary policy prudent, and there will be no “flood-like” stimulus, Li said at the World Economic Forum in the northeastern Chinese port city of Dalian.

Reporting by Kevin Yao; writing by Ryan Woo; Editing by Stephen Coates