Central Bank Governing Board Raises Reserve Requirement by 1% to Tighten Monetary Policy Further, Accompanied by Real Estate Credit Controls

Reported 7 months ago

During a press conference on June 13, 2024, the Central Bank of China's president, Yang Chin-lung, announced the decision to increase the reserve requirement without adjusting interest rates, surprising the market. The move aims to tighten monetary policy further and curb inflation expectations, particularly in the real estate sector, by implementing the sixth round of selective credit controls and raising the reserve requirement by 1%. Yang explained that the increase in the reserve requirement will affect the lending capacity of banks, demonstrating a clear impact on market regulation and lending practices.

Source: YAHOO

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