China might continue to raise required reserve ratio

时间：2007-10-17 01:21:41

（单词翻译:单击）

Chinanews, Beijing, Oct 17 – The People's Bank of China announced recently that starting from October 25, the central bank will raise the required reserve ratio by another 0.5 percentage point. By then, the required reserve ratio for financial institutions will reach 13%, the highest point in ten years, the International Finance News/i> reported.

 

The measure is aimed at “resolving excessive liquidity1 problem and curbing3 the fast increase of loan release”, said the central bank in announcing the measure. Compared with the previous time, it becomes clear that the central bank's efforts to curb2 the amount of money issued in the market have quickened. In a recent interview, Yin Jianfeng, head of the Financial Structure Research Department under the Chinese Academy of Social Sciences's Finance Reserach Institute, said on Monday that the central bank's efforts had achieved some positive results. The basic money issued in the market which resulted from the exchange rate difference had been offsetted generally in recent years.

 

When asked whether the central bank would further raise the required reserve ratio in future, Yin said that would depend on how much trade surplus China would have. The economist4 predicted that China's trade surplus in future would not increase at such a fast speed as now. Affected5 by the adjusted export trade refund6 policy, trade surplus growth rate in China declined sharply during the first half of this year. It will decline further during the second half of the year until next year. Meanwhile, the negative effects of the sub-prime housing crisis to US economy have not fully7 exposed yet. If the crisis badly affects American people's wealth, it will also affect their consumption. By then, Chinese export to US will also be affected as well, said Yin.

 

However, Qin Hongyu, an economist at BNP Paribas Equities8 Limited, predicted that China would raise the required reserve ratio for another time by the end of this year.

 

Raising required reserve ratio is one of the three major measures often used by the central bank. In applying this measure, the central bank will require that commercial banks should keep a certain proportion of the deposited money in order to control excessive liquidity. When companies are eager to borrow loans from banks, raising required reserve ratio can prevent banks from releasing too many loans to companies.
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1 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。
2 curb LmRyy     
n.场外证券市场，场外交易；vt.制止，抑制
参考例句：
  • I could not curb my anger.我按捺不住我的愤怒。
  • You must curb your daughter when you are in church.你在教堂时必须管住你的女儿。
3 curbing 8c36e8e7e184a75aca623e404655efad     
n.边石，边石的材料v.限制，克制，抑制( curb的现在分词 )
参考例句：
  • Progress has been made in curbing inflation. 在控制通货膨胀方面已取得了进展。
  • A range of policies have been introduced aimed at curbing inflation. 为了抑制通货膨胀实施了一系列的政策。
4 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。
5 affected TzUzg0     
adj.不自然的，假装的
参考例句：
  • She showed an affected interest in our subject.她假装对我们的课题感到兴趣。
  • His manners are affected.他的态度不自然。
6 refund WkvzPB     
v.退还，偿还；n.归还，偿还额，退款
参考例句：
  • They demand a refund on unsatisfactory goods.他们对不满意的货品要求退款。
  • We'll refund your money if you aren't satisfied.你若不满意，我们愿意退款给你。
7 fully Gfuzd     
adv.完全地，全部地，彻底地；充分地
参考例句：
  • The doctor asked me to breathe in,then to breathe out fully.医生让我先吸气，然后全部呼出。
  • They soon became fully integrated into the local community.他们很快就完全融入了当地人的圈子。
8 equities 501c457a1f918a4b41824052f5a3f5eb     
普通股，股票
参考例句：
  • These are invested mainly in the OECD bonds and equities. 这些资产主要投资于经济合作及发展组织的债券与股票市场。
  • They are also advantage of the global rebound in equities. 它们还在利用全球股市反弹的机会。

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