Beijing Tries to Fend Off Economic Overheating
From Reuters
To curb the rapid credit growth that its leaders fear could cause the red-hot economy to overheat, China’s central bank imposed new limits on the amount of money commercial banks can lend.
It raised the proportion of money that banks must keep in their reserves by half a percentage point, effective July 5.
The move follows a 27 basis-point hike in benchmark lending rates in late April and a revaluation of the yuan by 2.1% against the dollar in July last year.
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