Reserve rate ups imply not money squeeze policy: Su Ning
The rises of deposit reserve rate this year is by no means the sign of tightening monetary policy, said Su Ning, vice director of the central bank, when attending the “Two Congresses”.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Su Ning says <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China will pursue the moderate easy monetary policy and it will use money policy tool to add on interest at the most proper time.
In February, the central bank asked, based on the report on quarter 4th monetary policy, to “orderly lead the loans from anti crisis measures to normal condition”. The banking regulator has raised deposit rate two times respectively on January 18 and February 25 by 0.5 points, or 16.5 per cent. In the mean time, the top supervisor has enhanced the way moral persuasion, and the regulation of local financing platform.
Despite all this efforts, the volume of money issuance still present a rapid growth at the beginning of the year, by 1.39 trillion yuan increased in January. According to Reuters’s report days before, in February the top four state-owned bankers has increased loans at about 294.0 billion yuan with a little fall to last month, compared to the annual loan target around 7.5 trillion yuan.
