Economics
China Orders Reserve Ratio Increase After Trade Surplus Surges
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China’s central bank raised lenders’ reserve requirements as cash from October’s larger-than-forecast $27.1 billion trade surplus threatened to add to the risk of asset bubbles and accelerating inflation.
Reserve requirements will increase 0.5 percentage points from Nov. 16, the People’s Bank of China said in a statement on its website about eight hours after the trade data. The announcement followed media reports today of increases for selected banks.