China hikes bank reserve requirement ratio to 19% from 20 Dec

10 December 2010 11:55  [Source: ICIS news]

SINGAPORE (ICIS)--China will hike bank reserve requirements once again on 20 December in a bid to control inflation, the third such increase to be implemented since mid-November and the sixth this year, the People's Bank of China (PBoC) said on Friday

The reserve requirement ratio, which refers to the portion of deposits that banks must park with the central bank, would be raised by 50 basis points to 19.0%, effective 20 December, the PBoC added.

The move is aimed at siphoning off excess liquidity from the financial system that may be fuelling inflation.

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By: Pearl Bantillo
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