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China orders banks to keep more money, raising deposit reserves by 0.5 points

China orders banks to keep more money, raising deposit reserves by 0.5 points

China's central bank is ordering commercial banks to keep more money on hand in an effort to stanch a flood of money into an economy wrestling with high inflation.
The People's Bank of China order Saturday raises the amount of deposits that banks must keep in reserve by 0.5 percentage points, to an overall level of 17 percent.
The increase is at least the 15th over the past 18 months as the government attempts to restrain bank lending that is fueling heavy investment in buildings, factories and other fixed assets and contributing to inflation that is hovering at 12-year highs.


Updated : 2021-02-28 18:46 GMT+08:00