Banking

China may raise RRR, interest rates further

(Agencies)
Updated: 2011-02-15 09:58

BEIJING?- China is prepared to?further?increase interest rates and banks' required reserve ratios (RRR) in 2011,?Reuters reproted Tuesday, citing?a report published by government think-tank.

According to a report by the State Information Centre under the National Development and Reform Commission, China?is likely to?increase the bank deposit reserve ratio to 23 percent from the current 19.5 percent.

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"The tool of RRR will be the first choice for the central bank,"?the report quoted the think-tank's conclusion as saying.

As part of the country's monetary policy toolbox, the People's Bank of China is also expected to permit the yuan to rise further, it added.

The?central bank raised interest rates on Feb 8, the second time in about?six weeks, the report said.