Domestic reserve ratio rises to 16.5%

Today, the domestic deposit of financial institutions renminbi deposit reserve ratio will be formally raised to 16.5%, this is the second time after January 18, 2010 to raise the domestic reserve ratio, the capital will freeze about 300 billion yuan. From the credit perspective, despite the country's adoption of many measures, January credit final delivery still reached 1.4 trillion, higher than the normal value of about 300 billion. From the liquidity perspective, March still has about 900 billion of the cash flow due. As a result, the market is expected to raise the reserve ratio for the central bank.　　Two times in 1 months, the reserve requirement ratio was frozen to a total of about 600 billion yuan. On February 12, the central bank announced the increase in reserve requirements, the Spring Festival after the end of the long holiday, the stock market fell two days, a small adjustment, the Shanghai index yesterday stable stand 3,000 points.　　Wanguo Macroeconomic analyst Li Huiyong said the reserve ratio will be less likely to hit the market than last, given that the market has been expected to tighten further monetary policy after the first reserve rate hike.　　For banks that are most directly affected by the reserve requirement ratio, Mao Junhua, analyst at China International Finance Limited, argues that monetary policy is still at a neutral stage from a big trend, with banks facing upward potential for spreads, combined with the average valuation of a a-share bank of 12 times times the 10 earnings ratio, with limited space for a- While the PBoC raised the reserve requirement ratio two times in one months, other economies also began to lay out their exit paths. The Federal Reserve increased the discount rate from 0.5% to 0.75% in February. Li Huiyong that the reserve requirement ratio could be raised by another 1% year. But if credit controls are still difficult to achieve the desired target, or the inflows of hot money have led to a significant increase in foreign exchange accounts, the reserve requirement ratio may also be forced to rise substantially. Stephen Green, chief economist at Standard Chartered, also said that monetary policy would tighten in the future and that the reserve requirement ratio would continue to rise, and he expected the central bank to raise interest rates two times in the one or two quarter to further ease inflationary expectations.