PBC increases deposit reserve ratio |
click rate:2763
issue time:2007-03-10 08:12
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Feb. 26, 2007 (China Knowledge) – China’s central bank, the People’s Bank of China (PBC) has raised the deposit reserve ratio by 0.5% to 10% on Sunday in order to absorb liquidity and to strengthen macro-economic controls. According to Guo Shikun, general manager of research in China Construction Bank, PBC may adjust the deposit reserve ratio three to four times with an increase rate of 0.5% to a final ratio of 11%. He also indicated that adjusting the deposit reserve ratio and issuing Central Bank notes and using open market operations will still be the main policy instruments to curb the excessive liquidity. This is the fifth time the deposit reserve ratio has been adjusted by PBC since last July.
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