THE central bank is prepared to increase interest rates and banks required reserve ratios (RRR) further in 2011, China Securities Journal quoted a government think tank as saying yesterday.
China may increase the bank deposit reserve ratio to 23 percent from the current 19.5 percent, according to the State Information Center under the National Development and Reform Commission.
Additionally, it s inevitable for the central bank to continue to raise interest rates in the future, as higher interest rates can effectively curb asset bubbles, the center said.
(SD-Agencies)
