Chinese central bank raises reserve ratio by 0.5% to fight inflation
The Central Bank is stepping up monetary policies in the wake of the release of the Consumer Price Index for the month of April. March this year saw a year-on-year dip to 8.3 percent, from 8.7 in February. But April has seen the CPI growth bounce back up to 8.5 percent. And the People's Bank of China has made another move to fight looming inflation, raising bank reserve ratios by half a percentage point. The new ratio of 16-and-a-half percent will be effective from next Tuesday onwards.
This is the fourth time this year that China has raised reserve requirements for commercial banks. Earlier hikes were in January, March, and April.
But this latest move comes as no surprise... with many anticipating tightening measures in the wake of the release of April's Consumer Price Index. Year-on-year growth rate rebounded a little from March to hit 8.5 percent. The central bank governor said late last week that combating inflation remains a top priority. And raising bank reserve requirements will help curb excessive liquidity. A 0.5 percentage point hike in the bank reserve ratio should freeze as much as 200 billion yuan of liquidity in the market.
Analysts say they think an uncertain economy will force the central bank to be cautious with measures like interest rate increases. And they believe the People's Bank of China is also concerned with keeping economic growth strong. This means more flexibleadministrative or quantitative measures that will not put too much of a curb on growth.
Many also suggest that authorities can turn to other tools besides monetarypolicy. These include a basket of measures including fiscal and industry policies to address complex challenges in the current economic situation.
关键字:国内英语新闻
生词表:
The Central Bank is stepping up monetary policies in the wake of the release of the Consumer Price Index for the month of April. March this year saw a year-on-year dip to 8.3 percent, from 8.7 in February. But April has seen the CPI growth bounce back up to 8.5 percent. And the People's Bank of China has made another move to fight looming inflation, raising bank reserve ratios by half a percentage point. The new ratio of 16-and-a-half percent will be effective from next Tuesday onwards.
This is the fourth time this year that China has raised reserve requirements for commercial banks. Earlier hikes were in January, March, and April.
But this latest move comes as no surprise... with many anticipating tightening measures in the wake of the release of April's Consumer Price Index. Year-on-year growth rate rebounded a little from March to hit 8.5 percent. The central bank governor said late last week that combating inflation remains a top priority. And raising bank reserve requirements will help curb excessive liquidity. A 0.5 percentage point hike in the bank reserve ratio should freeze as much as 200 billion yuan of liquidity in the market.
Analysts say they think an uncertain economy will force the central bank to be cautious with measures like interest rate increases. And they believe the People's Bank of China is also concerned with keeping economic growth strong. This means more flexibleadministrative or quantitative measures that will not put too much of a curb on growth.
Many also suggest that authorities can turn to other tools besides monetarypolicy. These include a basket of measures including fiscal and industry policies to address complex challenges in the current economic situation.
关键字:国内英语新闻
生词表:
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