Mumbai:
The People''s Bank of China has ordered commercial banks to set aside more
money as reserves, for an eighth time this year, to curb speculation in real estate
and stocks and curb inflation. The
central bank has asked banks to park 13 per cent of deposits as reserves from
October 25, up from 12.5 per cent. This is the highest in almost a decade. Seven
increases in the reserve requirement and five interest-rate rises this year alone
have failed to stop the economy expanding faster than 11 per cent for a third
quarter. Surging exports have pumped money into the world''s fastest-growing major
economy, fanning inflation to the highest in 10 years and fueling a boom in shares
and real estate. China''s
consumer prices surged 6.5 per cent in August from a year earlier, the biggest
jump since December 1996. The rate breached the government''s annual 3 per cent
target for a fourth consecutive month, as food costs soared. China''s
trade surplus jumped 56 per cent in September, the customs bureau said, taking
it to $185.65 billion for the first nine months of the year, more than the $177.5
billion for all of last year.
also see : General
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