As its first move since announcing a shift from "prudent" to "tight" monetary policy, Beijing will raise banks' reserve requirement ratio by a full percentage point, double the usual half-percentage increases, the Wall Street Journal reported. The increase, which is the 10th time this year the share of deposits banks must keep in reserve has gone up this year, will go into effect on December 25 for most commercial banks. Controlling the overly fast growth in credit, managing excess liquidity and reining in inflation remain major priorities for China's economic planners.
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