Goldman Sachs increase the precision of deposit greater than in the past

 Securities Market Weekly (Xinhua Hu Junying) the evening of January 14 for the People's Bank of China decided to raise deposit-taking financial institutions of RMB deposit reserve ratio by 0.5 percentage point, Goldman Sachs issued a report that raised the deposit reserve ratio will not

to 2%, and thus raising the deposit reserve ratio will not excess reserves to maintain a certain form of additional liquidity to meet the additional demand for funds, therefore, raised the deposit reserve ratio of commercial banks may be greater than in the past. I kind of industry to accelerate the penetration of the upstream raised the deposit reserve ratio to a new high in December data will lead to speculation that Jiaojia control out of control once again call for help the global tire industry, behind the alleged taking of 23 million subsidy left Enron: central bank move is not wise

Despite this increase, First, commercial banks focus on lending to increase in early heat stress, and increasing foreign exchange inflows into the real economy with more liquidity. According to Goldman Sachs research on the commercial banks showed that, despite differences between the central bank introduced a system of reserve ratio, but the scale of bank lending in the first two weeks may have been close to 1 trillion yuan, highlights the need for other control measures implemented; Second, external demand is also to accelerate growth, increase the overall demand pressures; Finally, bad weather makes the short-term upward pressure on food prices increase. In addition to cold weather and transportation of fresh food production, the winter drought may also have an impact on food prices. This may affect people's grain harvest expected this year to put pressure on food prices.

Up to now, high-frequency data show that the Ministry of Agriculture in January 2011 may be slightly higher than the CPI in December 2010, there is upward pressure.

Goldman Sachs report author Qiao Hong and Song Yu said the government in any case have to control inflation, higher than in recent years. Government in the coming months will continue to use a package of policy tools to curb inflation. Specific measures include estimated direct window guidance, further raising the deposit reserve rate (the difference between the reserves), interest rates and slightly accelerate the pace of yuan appreciation.

central bank data show that in December 2010, RMB loans increased by 480.7 billion yuan, an increase of 100.7 billion yuan, the annual increase of 7.95 trillion yuan of RMB loans. As of the end of 2010, China's foreign exchange reserves amounted to 2.8473 trillion U.S. dollars.