{"id":25546,"date":"2011-11-24T01:03:00","date_gmt":"2011-11-24T06:03:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/11\/24\/china-cuts-rrr-for-selected-rural-banks-by-50bps-to-16\/"},"modified":"2011-11-24T01:03:00","modified_gmt":"2011-11-24T06:03:00","slug":"china-cuts-rrr-for-selected-rural-banks-by-50bps-to-16","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/11\/24\/china-cuts-rrr-for-selected-rural-banks-by-50bps-to-16\/","title":{"rendered":"China Cuts RRR for Selected Rural Banks by 50bps to 16%"},"content":{"rendered":"

The People’s Bank of China<\/a> reduced the required reserve ratio for selected (20) rural cooperative banks by 50 basis points to 16.00% from 16.50% according to FT<\/a>\/Bloomberg<\/a>.  The move heralds a possible turn in policy settings in China, and follows previous comments<\/a> from Chinese Premier, Wen Jiabao, that the Chinese government would “preemptively fine-tune policy at a suitable time and by an appropriate degree”.  The move also follows an apparent peak in inflation in China of an annual rate of 6.5% in July this year, dropping to 5.5% in October.  The move also coincided with the release of the preliminary HSBC\/Markit PMI which dropped to 48 in November, from 51 in October; also showing weakness in input and output prices, and new orders.<\/span><\/p>\n

<\/a><\/div>\n
The People’s Bank of China last raised the reserve requirements<\/a> by 50 basis points in June this year to an average 21.50% for large banks, and 19.50% for small banks.  The PBC also adjusted<\/a> the reserve requirement rules in August, effectively resulting in tightening of about 100bps.  Meanwhile the People’s Bank of China last raised the benchmark interest rate<\/a> 25bps to 6.56% in early July this year.  The Bank for International Settlements recently published a paper on ‘China’s Evolving Reserve Requirements’ which provides an interesting and detailed analysis of the People’s Bank of China’s use of the required reserve ratio<\/a> as a tool for monetary policy.<\/p>\n

www.CentralBankNews.info<\/a><\/div>\n

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The People’s Bank of China reduced the required reserve ratio for selected (20) rural cooperative banks by 50 basis points to 16.00% from 16.50% according to FT\/Bloomberg.  The move heralds a possible turn in policy settings in China, and follows previous comments from Chinese Premier, Wen Jiabao, that the Chinese government would “preemptively fine-tune policy at a … <\/p>\n

Continue reading “China Cuts RRR for Selected Rural Banks by 50bps to 16%”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-25546","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=25546"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25546\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=25546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=25546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=25546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}