Banking

China may raise RRR, interest rates further

(Agencies)
Updated: 2011-02-15 09:58

BEIJING - China is prepared to further increase interest rates and banks' required reserve ratios (RRR) in 2011, Reuters reproted Tuesday, citing a report published by government think-tank.

According to a report by the State Information Centre under the National Development and Reform Commission, China is likely to increase the bank deposit reserve ratio to 23 percent from the current 19.5 percent.

Related readings:  China still has room for RRR rises  China hikes interest rates to damp inflation  China's interest rate raised second time in 2010  China may raise interest rates again, say analysts

"The tool of RRR will be the first choice for the central bank," the report quoted the think-tank's conclusion as saying.

As part of the country's monetary policy toolbox, the People's Bank of China is also expected to permit the yuan to rise further, it added.

The central bank raised interest rates on Feb 8, the second time in about six weeks, the report said.