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The Central Bank Once Again Raised The Reserve Requirement Ratio &Nbsp, And Curbing Inflation Is The Main Reason.

2011/3/21 15:28:00 35

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Inflation In Deposit Financing Institutions

The people's Bank of China announced on the evening of March 18th that the deposit reserve ratio of deposit financial institutions increased by 0.5 percentage points from March 25, 2011.

The increase was only a month away from the previous increase. It was also the third time that the central bank raised the deposit reserve ratio of financial institutions during the year.

This year, the central bank has raised the deposit reserve ratio of financial institutions for the two time in January 20th and February 24th respectively.

After this increase, China's large scale

Financial institution

The deposit reserve ratio of small and medium-sized financial institutions has reached a historical high of 20% and 16.5% respectively.

Roughly estimated, the 0.5 percentage point increase in the deposit reserve ratio can freeze the liquidity of the banking system by more than 350 billion yuan.

Analysts believe that the central bank's reserve requirement ratio is intended to effectively control market liquidity and ease market inflation expectations.

Expert interpretation

Curbing inflation is the main reason not to exclude the possibility of raising interest rates.

Since the beginning of this year, the central bank has raised the deposit rate for the three time. What information does it convey to the national monetary policy and how will it affect the market?

Curb excessive hot money flow

Economics and Xi'an Jiao Tong University

Finance

Li Fuyou, a professor at the college, thinks that the increase in deposit reserve ratio to 20% is the new high in this century. The main reason is to curb the excessive inflow of hot money, because in the context of the continued appreciation of the RMB, the hot money inflows into the country is very fast. These hot money can not only benefit from interest difference, but also benefit from the exchange rate difference, and raising the deposit reserve ratio can better inhibit the inflow of hot money.

"It is worth noting that in the context of interest rate increase in the periphery, coupled with high domestic prices,"

price

Index, the central bank can only effectively curb inflation by recycling liquidity.

It is regrettable that the central bank has not adopted such an obvious way of raising interest rates to curb inflation, and has adopted a more moderate way to raise the deposit reserve ratio, although such measures will play a role in recovering liquidity, but the effect is not obvious.

Pi Haizhou, a well-known financial commentator, thinks so.

Do not rule out the possibility of raising interest rates.

Li Fuyou said: "the third increase in the reserve ratio of the central bank during the year is the further return of monetary policy to normality.

On the one hand, it shows that the central bank is worried about the current excess liquidity, and on the other hand is to curb inflation.

As long as inflation does not end in the world, the liquidity policy will become normal.

Although the increase in the deposit reserve ratio has an alternative effect on raising interest rates, the current deposit reserve rate has risen to a record high, and the possibility of raising interest rates will not be ruled out in the future.