Banks' reserve rate raised again

时间：2007-07-31 06:40:43

（单词翻译:单击）


The central bank Sunday raised the amount that lenders must hold in reserve by 0.5 percentage point for the sixth time this year.
 
BEIJING, July 31 - The central bank Sunday raised the amount that lenders must hold in reserve by 0.5 percentage point for the sixth time this year.

 

The increase in the banks' reserve requirement ratio will take effect from August 15, the People's Bank of China, the central bank, said in a statement on its website.

 

The ratio will reach 12 percent for big lenders after the adjustment.

 

The move is not surprising, analysts1 said, after the release of macroeconomic data for the first half of this year.

 

"It is aimed to control money supply," said Zhu Baoliang, chief economist2 with the State Information Center (SIC).

 

Boosted by ample liquidity3, China registered gross domestic product growth of 11.5 percent for the first six months, during which fixed-asset investment rose by 25.9 percent. Lending grew by 16.5 percent year on year.

 

The central government has vowed4 to prevent the economy from overheating, and the central bank said the hike in the reserve requirements was aimed at "strengthening management of liquidity in the banking5 system and control excessive growth in money supply and credit".

 

The broad measure of money supply, or M2, grew by 17.1 percent year on year in June, which was higher than the target of 16 percent set by the central bank for this year.

 

The latest step follows the raising of benchmark interest rates by 0.27 percentage point on July 20 and cutting the tax on interest income from 20 percent to 5 percent in a coordinated6 move to reduce liquidity and stabilize7 the blistering8 economy.

 

"The liquidity situation has become more and more serious," said Zhao Xijun, finance professor at Renmin University of China.

 

The trade surplus jumped 83 percent to $112.5 billion in the first six months while foreign exchange reserves swelled9 to $1.3 trillion. The money supply, if not contained, will spill into the economy and lead to a pick-up in prices, including asset prices, and investment, said Zhao.

 

The authorities can resort to issue of central bank bills and hikes in the reserve requirements to ease the problem, but they are not limitless, Zhao told China Daily.

 

"We cannot raise the ratio continually and it has a cap."

 

The 0.5 percentage point hike in the banks' reserve requirement ratio is expected to absorb as much as 150 billion yuan (19.8 billion). "It will play a role in reducing liquidity," said SIC's Zhu.

 

But Renmin University's Zhao said the country will ultimately need to reduce its foreign trade surplus.

 

The government has started to reduce or remove export rebates10 for more than 2,800 products, effective from July 1, in an effort to dampen exports and narrow the trade surplus.

 

Zhao also suggested that the corporate11 bond market be promoted so that enterprises can issue bonds more easily to raise capital.

 

"This will also help cut liquidity in the market."

 

Currently, the corporate bond market is estimated to account for only a very small slice of the capital market. "It is almost negligible," Zhao said.

 

The central bank has also raised interest rates thrice this year.

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1 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
2 economist AuhzVs     
n.经济学家，经济专家，节俭的人
参考例句：
  • He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
  • He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。
3 liquidity VRXzb     
n.流动性，偿债能力，流动资产
参考例句：
  • The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
  • The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。
4 vowed 6996270667378281d2f9ee561353c089     
起誓，发誓（vow的过去式与过去分词形式）
参考例句：
  • He vowed quite solemnly that he would carry out his promise. 他非常庄严地发誓要实现他的诺言。
  • I vowed to do more of the cooking myself. 我发誓自己要多动手做饭。
5 banking aySz20     
n.银行业，银行学，金融业
参考例句：
  • John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
  • He possesses an extensive knowledge of banking.他具有广博的银行业务知识。
6 coordinated 72452d15f78aec5878c1559a1fbb5383     
adj.协调的
参考例句：
  • The sound has to be coordinated with the picture. 声音必须和画面协调一致。
  • The numerous existing statutes are complicated and poorly coordinated. 目前繁多的法令既十分复杂又缺乏快调。 来自英汉非文学 - 环境法 - 环境法
7 stabilize PvuwZ     
vt.（使）稳定，使稳固，使稳定平衡；vi.稳定
参考例句：
  • They are eager to stabilize currencies.他们急于稳定货币。
  • His blood pressure tended to stabilize.他的血压趋向稳定。
8 blistering b3483dbc53494c3a4bbc7266d4b3c723     
adj.酷热的；猛烈的；使起疱的；可恶的v.起水疱；起气泡；使受暴晒n.[涂料] 起泡
参考例句：
  • The runners set off at a blistering pace. 赛跑运动员如脱缰野马般起跑了。
  • This failure is known as preferential wetting and is responsible for blistering. 这种故障称为优先吸湿，是产生气泡的原因。 来自辞典例句
9 swelled bd4016b2ddc016008c1fc5827f252c73     
增强( swell的过去式和过去分词 )； 肿胀； （使）凸出； 充满（激情）
参考例句：
  • The infection swelled his hand. 由于感染，他的手肿了起来。
  • After the heavy rain the river swelled. 大雨过后，河水猛涨。
10 rebates 5862cab7436152bb9726585397fb1db9     
n.退还款( rebate的名词复数 )；回扣；返还（退还的部份货价）；折扣
参考例句：
  • The VAT system offers advantages, such as rebates on exports. 增值税有其优点，如对出口商品实行回扣。 来自辞典例句
  • In more recent years rate rebates have been introduced for households. 近年地方税的减免已适用于家庭。 来自辞典例句
11 corporate 7olzl     
adj.共同的，全体的；公司的，企业的
参考例句：
  • This is our corporate responsibility.这是我们共同的责任。
  • His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

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