China Reluctance on Reserve-Ratio Cut Signals Inflation Concern

China Reluctance on Reserve-Ratio Cut Signals Inflation Concern

Nelson Ching/Bloomberg

The ratio is 7 percent below the record 21.5 percent, while the one-year lending rate is a fifth lower than its peak over the past decade of 7.47 percent in 2008, before even considering that the PBOC last month allowed banks to offer discounts of as much as 30 percent from benchmark rates.