Related News
China raises deposit reserve ratio to curb lending
By Zhang Fengming |
February 12, 2010, Friday
|
Online Edition
Online Edition
CHINA today asked banks to freeze more money from lending, the second time within a month to further tighten liquidity.
Economists said the announcement, which fell one day before the traditional Spring Festival holidays, sent a signal to the market of the central bank's heavy hands to curb monetary growth in the first half.
The reserve ratio - the amount of money a bank must put at the central bank from lending - will increase 0.5 percentage points on yuan deposits starting February 25, the People's Bank of China said on its Website at about 6pm.
China's previous reserve increase was announced on January 12, the first increase since June 2008.
The seven-day Spring Festival holidays can give the stock market a long break to digest the move, analysts said.
Rural cooperatives are exempted from the requirement rise to support the development of the rural areas especially during the spring planting season, the central bank said.
The reserve requirement increase can help drain 200 billion yuan (US$29 billion) to 300 billion yuan from the market.
Economists said the announcement, which fell one day before the traditional Spring Festival holidays, sent a signal to the market of the central bank's heavy hands to curb monetary growth in the first half.
The reserve ratio - the amount of money a bank must put at the central bank from lending - will increase 0.5 percentage points on yuan deposits starting February 25, the People's Bank of China said on its Website at about 6pm.
China's previous reserve increase was announced on January 12, the first increase since June 2008.
The seven-day Spring Festival holidays can give the stock market a long break to digest the move, analysts said.
Rural cooperatives are exempted from the requirement rise to support the development of the rural areas especially during the spring planting season, the central bank said.
The reserve requirement increase can help drain 200 billion yuan (US$29 billion) to 300 billion yuan from the market.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
