China Continues to Fight Inflation With Additional Increase to Reserve Ratios
Tweet
Share
E-mail
China has ordered lenders to reserve more capital with the nation's central bank for the third time in five weeks as it looks to counter the growing threats of inflation including the November lending and trade surplus coming in higher than estimates.
The People's Bank of China said Friday that reserve requirements in the country will increase 50 basis points starting December 20, as the policy makers have avoided adding to the interest rate increase set forth in October.
"Exceedingly strong exports growth amid an already overheated domestic economy is not good news as it adds to the overheating pressures which will require the government to take even more stringent measures to bring down inflation," Goldman Sachs Group Inc. analysts Song Yu and Helen Qiao said, according to Bloomberg.
The central bank in China has said that it also plans to use the sale of bill to remove cash from the financial system.
The People's Bank of China said Friday that reserve requirements in the country will increase 50 basis points starting December 20, as the policy makers have avoided adding to the interest rate increase set forth in October.
"Exceedingly strong exports growth amid an already overheated domestic economy is not good news as it adds to the overheating pressures which will require the government to take even more stringent measures to bring down inflation," Goldman Sachs Group Inc. analysts Song Yu and Helen Qiao said, according to Bloomberg.
The central bank in China has said that it also plans to use the sale of bill to remove cash from the financial system.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Verizon planning new round of layoffs this week - Barron’s
- Susquehanna Starts IBM (IBM) at Neutral
- Apollo bets on Mexico with $20 billion target for private credit - Bloomberg
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
