China ordered lenders on Friday to lock up more of their money with the central bank for the second time in two weeks, stepping up its battle to pull excess cash out of the economy before inflation has a chance to take off.
The People’s Bank of China said that it would increase banks’ required reserves by 50 basis points, its fifth such announcement this year. Including a temporary increase, the move takes required reserve ratios (RRR) to 18.5 percent for big banks, a record high.
This has apparently put on pressure on commodities prices, I’ve compiled some news from Bloomberg as below
- Cotton Has Biggest Weekly Slump in 16 Months on Indian Crop, China Outlook
- Raw-Sugar Futures Plunge on China Inflation Concern; Cocoa Futures Decline
- Oil Has Biggest Weekly Decline in Three Months on China Bank Reserves Move
- Soybeans, Corn Decline as China Moves to Slow Growth May Curb Food Demand
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