Latest News:  


China to slightly ease monetary policy in 2013


08:15, January 05, 2013

BEIJING, Jan. 4 (Xinhua) -- China may fine-tune its monetary policy in 2013 by reducing interest rates and the reserve requirement ratio (RRR) to support economic growth, according to research results published Friday.

A small interest rate cut at the right time could substantially decrease financing costs and improve expectations for profitability, said researchers from the China Development Bank, the State Information Center and the Shanghai Securities News who have worked together to forecast key economic indicators and policies in 2013.

Inflation will likely hit 3 percent this year, lower than the 3.3-percent maximum interest rate that lenders are currently allowed to set for one-year deposits, creating room for further interest rate decreases, the researchers predicted.

The researchers also said they expect moderate reductions for the RRR, or the amount of money banks must set aside as reserves, to prevent a pessimistic economic outlook from taking hold.

The central bank trimmed benchmark interest rates and the RRR twice in the first seven months of 2012 to spur growth. But it has since resisted further cuts, preferring to use open market operations instead.

The RRR for large-sized lenders currently stands at 20 percent, leaving plenty of room for a cut, the researchers said in several reports published in the Shanghai Securities News.

【1】 【2】

We recommend:

BJ-GZ HS to add 30b yuan to GDP annually

Great changes in Zhengzhou railway station

Wanda Group ventures onto the global stage

Sports car makers look to mainland market

Top Ten Economic Events in 2012

'Gold road' laid with gold bars

Email|Print|Comments(Editor:黄蓓蓓、Liang Jun)

Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. NBC emergency rescue team

  2. Anti-terror exercise conducted in S. Korea

  3. Finalists in Sydney to compete for Best Jobs

  4. Girl travels 16 hours to save wounded eye

  5. Percussion shows me the world

  6. No quick way
    to a job

  7. Nanhaizi Park: An ecological garden

  8. Most beautiful Chinese celebs

  9. HK's new terminal receives luxury liner

  10. Hilton to open 120 new hotels in China

Most Popular


  1. Whistleblower welcome in China
  2. Chinese brands in global marketplace set to grow
  3. Surveillance programs reveal U.S. hypocrisy
  4. People's Daily urges safety after deadly accidents
  5. Equities slump amid slow-growth estimates
  6. World owes Snowden debt of gratitude
  7. Male teachers needed at Chinese kindergartens
  8. Hard times for air pollution
  9. Road ahead for China's food safety
  10. Showdown of China's Big Three cities

What’s happening in China

Developer razes historic Guangzhou structures

  1. 1 dead in NE China construction site accident
  2. Beijing set to rein dangerous dogs
  3. Quest for 2nd child exposes couple’s private life
  4. 'Alien' buster turns out to be a faker
  5. Japanese citizens detained for fraud, murder