Additional Reserve Ratio Hikes Predicted for this Month

China's central bank injected a net 103 billion yuan into the money market this week through its open market operations, the 16th consecutive week that the central bank has added liquidity to the money market. It now appears inevitable that the central bank will once again raise required reserve ratios of the country's large lenders this month. However, some analysts argue that even if policy makers lift reserve ratios twice in March, other factors are likely to cause liquidity in the interbank market to remain at current relatively loose levels.

Source
China Securities Journal

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