PBOC announces reserve ratio hikes
10 June 2008
On Saturday, China's central bank announced two 0.5% percentage point hikes in commercial banks' reserve requirement ratio, to take place on June 15 and June 25, state media reported. The two hikes will bring the reserve requirement ratio to a record-high 17.5%. "The rise, a further materialization of the tight monetary policy, is aimed at strengthening liquidity management in the banking system," the central bank said in a statement on its website. The People's Bank of China also said that commercial lending institutions in the worst-hit quake areas, including Chengdu and Mianyang, would be allowed to postpone enacting the new regulations, but did not provide further details.