Skip to main content

What should we make of the rumoured RRR hike?

Reuters is reporting that the required reserve ratio (RRR) for major banks has been raised. The People’s Bank (PBC) has not confirmed the move, but if true the best explanation is that the large banks are being rapped over the knuckles for loosening credit policy too fast. But the PBC seems to have no wish to tighten policy by forcing banks to stick to the annual quota. Interest rate hikes still seem unlikely.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access