Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Central bank raises reserve ratio to 15.5%
Adjust font size:

China's central bank decided on Tuesday to raise the deposit reserve requirement ratio of commercial banks to a record high of 15.5 percent as of March 25, the second such move this year.

The move was to further strengthen the regulation of liquidity in the banking system and allow bank loans to increase in a reasonable way, said a statement on the website of the People's Bank of China (PBC).

It echoed Premier Wen Jiabao's talks at a press conference Tuesday that the government would tackle soaring prices and mounting inflationary pressure.

In his government work report to the National People's Congress, Wen said the task of holding down inflation was "difficult".

"The current price rises and increasing inflationary pressures are the biggest concern of the people," he said.

China's inflation rate has continued to accelerate, with the consumer price index (CPI) up 8.7 percent year-on-year in February, the biggest jump in nearly 12 years, posing greater challenges for a country already bothered by excess liquidity.

Wen acknowledged that it will be hard for China to attain its goal of holding the rise in the consumer price index (CPI) at about 4.8 percent and controlling price rises this year, and it is made even more difficult by the worst sleet and snow disaster in decades in the first two months of this year.

The unusually harsh winter had dealt a serious blow to vegetable and rapeseed crops and killed many pigs and chickens, cutting down market supply and caused price rises.

But he insisted that the government is fully confident of controlling inflation this year.

Yi Gang, vice-governor of PBC said earlier that China's top task is to combat inflation in 2008, and tight monetary policy wouldn't be changed despite the impact of the subprime crisis and heavy snow.

1   2    


Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Reserve ratio hits small banks
- Banks' reserve ratio raised to 15%
- Reserve ratio reaches record
- Bank reserve ratio raised by 1%
- Stock Markets Experience Correction After Reserve Ratio Rise News
Most Viewed >>
- Beijing has A380 maintenance hangar
- China to inject 20 bln yuan into 1st jumbo jet company
- ThinkPad X300 launched
- China detects suspect ingredent in heparin samples
- Jim Rogers: Don't sell Chinese stocks

May 15-17 Shanghai Women's Forum Asia

Dec. 12-13 Beijing China-US Strategic Economic Dialogue

Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?