Moves to slow down China's economy are working but the People's Bank of China could take further steps, including further increases in bank reserve ratios. The bank has raised lending rates twice since April and reserve requirements have gone up on three occasions, the <i>South China Morning Post</i> reported. The latest hike in reserve ratios was announced on November 3. "The situation is very good. After a period of macroeconomic controls, all indicators pointing to overheating are on the decline," said bank governor Zhou Xiaochuan during a meeting of international bankers in Sydney. "But it is too early to say whether such process will be a success." Zhou did not comment on monetary policy but said on the sidelines of the G-20 meeting in Melbourne that higher bank reserves could be an effective tool.