The Central Bank Raised The Deposit Reserve Rate Again, Experts Say, Directly Related To Prices.

According to the voice of the economy "world finance" reported that in order to control the rapid rise in prices, the central bank yesterday (17) again to tighten liquidity. At five p.m. yesterday, the central bank announced that the deposit raising financial institutions should be raised from April 21, 2011. RMB deposit reserve ratio 0.5 percentage points.

Yin Jianfeng, a researcher at the Institute of finance of the Chinese Academy of Social Sciences, said Price trend There is a direct correlation between the increase and decrease of money supply. money supply After rapid growth, price movements will follow the upward trend. The central bank constantly increases the deposit reserve ratio. The purpose is to gradually eliminate the monetary factors of rising prices.

Guo Tianyong, director of the banking research center of Central University of Finance and Economics, pointed out that the re - increase is a signal that the central bank will continue to carry out a robust policy to the market. Frequent upgrades mean that the bank credit space will shrink this year, and it will be difficult to maintain growth. Considering that the whole domestic banking industry is mainly based on interest income, the continuous tightening policy will make the credit growth space of banks smaller. He also predicts that the size of the credit will be around 7 trillion this year, which is much lower than that of last year's 7 trillion and 950 billion. Therefore, it is more difficult for banks to maintain their performance growth. He suggested that strengthening the mixed operation and developing more profitable channels is the way for the banking industry to cope with the future.

The high CPI is also one of the reasons for raising the reserve requirement again. Wang Xiaoguang, a researcher in the Department of policy consultation of National School of Administration, pointed out that this adjustment is mainly aimed at the data released just in the first quarter, and the overall economic growth rate is hot. Besides all the CPI indicators, the indicators continue to be high. Therefore, only raising the deposit reserve ratio can not see a definite effect at present. We suggest adopting interest rate measures.

In addition, from the published data, CPI is mainly from food and housing prices, which is spreading to other areas. This is also the reason for the need to increase liquidity management. Therefore, Li Xunlei, chief economist of Guotai Junan Securities, believes that the central bank raised the deposit reserve ratio for the 4 time in 4 months, mainly in order to hedge foreign exchange and to recover liquidity in advance. Because once the basic money enters the banking system, it will create more money through credit.