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China to slow growth of money

China to slow growth of money

(17 October 2007 – China) China’s central bank, the People’s Bank of China, has put in place plans to tighten monetary policy and slow the growth of money supply. The PBC announced that reserve requirements for depository financial institutions would be increased by half a percentage point using the RMB reserve requirement ratio.

The change in the reserve requirements was designed to strengthen liquidity management in the banking system as well as curb the growth of money and credit, the PBC said.

The central bank has also planned to absorb funds from smaller lenders by inviting some city commercial banks and rural credit cooperatives to deposit funds at competitive interest rates.
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