The People’s Bank of China said on its Web site (www.pbc.gov.cn) that the 0.5 percentage point increase in the reserve requirement ratio would take effect on April 16.
“The central bank will continue to implement stable monetary policy, use different tools to enhance liquidity management in the banking system, keep liquidity at an appropriate level and avoid excessive growth in the money supply and credit,” the central bank said in a statement.
It was the third increase this year in the proportion of deposits that banks must tie up in reserve at the central bank instead of lending out.
“This was basically within my expectations as the pressure of excess liquidity is quite intense. We have been expecting the government to impose a series of tightening measures,” said Cheng Manjiang, an economist with Bank of China International in Beijing.
The ratio for big banks rises to 10.5 percent, while that for smaller lenders rises to 11.0 percent.
The central bank has also raised interest rates three times in the past year. The most recent of those went into effect on March 18.
When we choose to look away for good, we are as complicit as those at the helm of this atrocity
Over 100 people in Lebanon have been reported killed during the hostilities started on October 7