www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

Government and Policy

Bank raises reserve ratios to stifle inflation

By Wang Xiaotian (China Daily)
Updated: 2010-11-20 08:13
Large Medium Small

Hike in reserve ratios aimed at mopping up credit, easing pressure

BEIJING - The People's Bank of China said on Friday it will raise the required reserve ratios for banks by 50 basis points from Nov 29 - the fifth such increase this year - in a move aimed at strengthening liquidity management and further tightening credit.

Li Xunlei, chief economist with Guotai Junan Securities, said the move was within expectations, given the over-liquidity in the market and the subsequent rising inflationary pressure.

Related readings:
Bank raises reserve ratios to stifle inflation China needs to address rising inflation: central bank governor
Bank raises reserve ratios to stifle inflation China's CPI growth to slow in next two months: Bank report
Bank raises reserve ratios to stifle inflation China raises bank reserves to calm credit growth
Bank raises reserve ratios to stifle inflation China to keep high alert for inflation risks -?central bank

"Raising reserve requirements is a direct and more useful method to soak up liquidity," Li said, adding that the alternative of increasing interest rates usually has side effects that impact economic growth.

To soak up over-liquidity and control inflation, the central bank announced a raise of 50 basis points on Nov 10, after raising interest rates for the first time in three years by 25 points.

The latest 50-basis-point increase should lock up about 350 billion yuan ($52.7 billion) that would otherwise be available for banks to lend out.

Wang Tao, head of China economic research at UBS Securities, said the increase of foreign reserves in China might reach $80 billion in October because the trade surplus amounted to nearly $27.2 billion, which is more than a 60 percent increase from the previous month.

"That would impose more liquidity pressure on the market," Wang said.

In addition, liquidity levels remain a cause for concern because China lent out 587.7 billion yuan in October, which was more than expected, said the central bank on Nov 11.

M2, the broad measure of money supply, rose 19.3 percent in October from a year earlier.

"The central bank's move is to counter superfluous hot money," said Pan Xiangdong, chief economist at Everbright Securities. He predicted that the government will raise reserve requirements or interest rates again in December to further tighten liquidity.

"The two monetary tools could be used jointly next month because raising reserve requirements usually targets a reduction in currency issuance and hikes in interest rates targets inflation," said Wang.

She said monetary policies are better for curbing inflation than harsh administrative measures that may backfire because expectations of further price rises could intensify.

"In addition, monetary tightening measures could also prevent price hikes in certain sectors from spilling over into other commodities."

China's consumer price index (CPI), a key gauge of inflation, surged 4.4 percent year-on-year in October to a 25-month high, according to figures from the National Bureau of Statistics, stoking inflation fears.

According to figures from the Ministry of Commerce, in the first two weeks of November, the average wholesale price of 18 major vegetables went up by 62 percent year-on-year, and increased by 11.3 percent since the beginning of this year.

Wang predicted the country's CPI will probably reach nearly 5 percent year-on-year in November, but may fall in December due to a higher basis last year and then remain controllable next year.

Premier Wen Jiabao said on Wednesday that the State Council, China's Cabinet, is drafting a slew of measures to suppress rising commodity prices, including boosting food supply and the provision of other necessities, increasing subsidies for low-income families and using more targeted policies to maintain market order.

The government said that, when necessary, contemporary measures could be taken to interfere with the prices of some important daily necessities.

Meanwhile, in a bid to guarantee market supplies and curb price rises, the Ministry of Commerce announced on Wednesday that it will auction 200,000 tons of sugar from reserve supplies on Nov 22. Since the end of September, the ministry has sold 62,400 tons of pork and 210,000 tons of sugar from reserves to ensure there is sufficient supply to keep prices stable.

主站蜘蛛池模板: 国产l精品国产亚洲区久久 国产tv在线 | 三级黄色网 | 亚洲午夜久久久久国产 | 香蕉伊人网 | 欧美三级黄色 | 日韩一品在线播放视频一品免费 | 精品午夜久久网成年网 | 成人在线观看不卡 | 久久精品视频一区二区三区 | 欧美精品束缚一区二区三区 | 中文字幕一区二区三区精品 | 欧美xxxxx色视频在线观看 | 日韩欧美视频在线一区二区 | 求欧美精品网址 | 久久se精品一区精品二区 | 亚洲成人免费网址 | videosfree性欧美另类 | 九九香蕉网 | 色综合久久久久 | 成人亚洲在线 | a毛片毛费观看 | 97超级碰碰碰免费公开在线观看 | 伊人色综合久久成人 | 亚洲成人福利 | 欧美日韩性视频一区二区三区 | 成人男女啪啪免费观看网站 | 国产成人黄网址在线视频 | 日本一区二区三区高清在线观看 | 久久精品视频6 | 女子张开腿让男人桶视频 | 91日本在线精品高清观看 | 一区二区三区国模大胆 | 亚洲男人的天堂在线视频 | 成人欧美精品一区二区不卡 | 成人毛片在线播放 | av在线亚洲男人的天堂 | a级一片| 免费观看欧美一级高清 | 性盈盈影院影院 | 国产一区二区三区在线免费 | 香蕉成人在线视频 |