Possibility of China Rate Increase Rising, Deutsche Bank's Jun Ma Says

The possibility that China may raise interest rates has risen following the increase in the bank reserve requirement ratio, according to Deutsche Bank AG.

Pressure for an “asymmetric rate hike” or liberalization of deposit rates will increase after the central bank raised the reserve requirement ratio and given rising inflation in September and recent rebound in stock and property prices, Deustche Bank analysts led by Jun Ma said in a report today.

To contact the reporter on this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net

To contact the editor responsible for this story: Reinie Booysen at rbooysen@bloomberg.net

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