News, analysis and personal reflections on the markets & the financial sector

Friday, February 12, 2010

China Raises Bank Reserve Requirement to Cool Economy

(Bloomberg) -- China ordered banks to set aside more deposits as reserves for the second time in a month to cool the fastest-growing economy after loan growth accelerated and property prices surged.

The reserve requirement will increase 50 basis points, or 0.5 percentage point, effective Feb. 25, the People’s Bank of China said on its Web site today. The current level is 16 percent for big banks and 14 percent for smaller ones.

No comments: