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Inflation is higher and People’s Bank of China wastes no time in raising bank reserves–interest rate increase not far behind

What took them so long? Hours after the release of data showed China’s annual inflation rate moving up to 5.5% in May, Beijing ordered another 0.5-percentage-point increase in bank reserve requirements. China’s biggest banks will need to keep a record 21.5% in reserves against loans. The increase in the reserve requirement will drain about $57 [...]Image may be NSFW.
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