Saturday, January 15, 2011

The People's Bank of China Raised the Required Reserve Ratio Another 50bps

The People's Bank of China [PBOC] raised the required reserves ratio another 50 basis points (placing the rate at 19% from 20 Jan 2011). The move comes just ahead of the December economic statistics releases (due early next week), and follows a spike in inflation to 5.1% in November. Previously the PBOC has commented that it may look to review required reserve ratios on a monthly basis.


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