Friday, October 3, 2014

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Went strong on liquidity bubble defense 'reserve ratio increase of 0.5% points for the six commercial banks with the central bank, the People's Bank of China limited time. 11 days, according to <Reuters> Communications, People's Bank has been to freeze foam coat the reserve ratio for the banks since last May, is to manage the liquidity reserve ratio over the next two months and thus to improve decision. Reserve ratio for large banks is 17 percent, the People's Bank has kept the meantime 15% of the bank reserve ratio is small. <Bloomberg> Communications said, "The way forward flow (Lu Zhengwei) Kogyo (興業) Bank economist 'naseogil wanted to liquidity management can proactively People's Bank' foam coat and a View Bar", this action foam coat of the United States, China, was interpreted as an emergency measure to prevent asset bubbles, foam coat according to the liquidity of the anti-western Japan. Pointed out that the actions of the Chinese market, the prediction of breaking blitz action had anticipated bout in July, there is more of a People's bank reserve ratio hikes in the middle of the year among five people, only one economist said <Bloomberg> is. Recently been warning that the result foam coat of such equity asset bubbles in emerging markets, while accelerating the inflow of foreign funds triplet measures such as the U.S., Japan, the International Monetary Fund, liquidity, etc.. Thus, while China's proactive response to the liquidity spiral bubble, Korea Bank of Korea's policy is to continue to adhere to the low interest rates contrasts.
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