You are here

China tweaks reserve ratio tool, fewer cuts seen likely

Wednesday, January 6, 2016 - 05:50

The change is part of a broader shift towards more flexibility with policy tools as China tries to balance economic reforms with propping up growth. Central bank researchers have advocated setting up an interest-rate target similar to what the US Federal Reserve has used.


AS investors continue to grapple with China's economic slowdown, regulators may be taking away an old standby for monetary easing.

The required reserve ratio for commercial banks, a tool long used to add or remove liquidity, will increasingly be used instead as a lever for

Market voices on:

Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at

Powered by GET.comGetCom