RMB Deposit Reserve Rate Increased By 0.5 Percentage Points

This is the sixth time in the year that the reserve requirement ratio has been raised. The reserve requirement ratio of large banks has reached 18.5%, becoming the highest point in history.

The highest point was the reserve requirement ratio of 17.5% in June 2008.

In November 10th, the people's Bank of China decided to increase the deposit reserve ratio of deposit financial institutions by 0.5 percentage points from November 16th.

Insiders pointed out that, taking into account the current capital inflow pressure is rising, short-term interest rate increases may be restricted, the possibility of further use of the deposit reserve ratio during the year is more likely.

Lian Ping, chief economist at Bank of communications, said that raising the deposit reserve rate might mean reducing the possibility of raising interest rates again during the year.

Xu Gang, managing director of CITIC Securities, announced that micro-blog's reserve ratio continued to rise.

With the unprecedented relaxation of monetary policy in the United States, China's monetary policy has experienced unprecedented tightening.

In terms of quantity, both sides are avoiding the use of price instruments, such as interest rates and exchange rates.

Although the volume contraction will have a restraining effect on the total domestic demand, it is doubtful whether China's unilateral tightening can be controlled for imported inflation caused by the US quantity easing.

Li Daxiao, director of the British Securities Institute, said on Sina micro-blog that raising reserves is a response to inflation. This time, the quantitative tools were slightly better than expected, and the impact on the market was negative, but the market had already fully anticipated that the impact was relatively small.

The National Bureau of Statistics announced on Wednesday that the release date of November economic data will be advanced to Saturday. The superposition of the two messages has led to speculation that the central bank may launch regulatory policies on Friday.

Although the National Bureau of statistics has repeatedly stressed that data is released ahead of schedule in order to maintain the stability of data release time, there are still expectations for tightening policies in the market.

The main reason is that China's consumer price index (CPI) remains high.

It is widely expected that CPI will hit a new high in November due to the overall rise in food prices in the first half of November.

Economists believe that China's CPI data will or will spawn new monetary control policies.