To coordinate the monetary policy and the government policy, Chinese central bank raised the required reserve ratio 0.5 percentage points on January 16.

This is the first time for the Chinese central bank to raise the required reserve this year.

Last year, the required reserve ratio was increased 10 times from 9.5 percentage points to 14.5 percentage points. The rate of increase was fixed at 0.5 percentage points for the whole year, except November.

The rate was changed 1 percentage point that month.

According to the arrangement of the annual central economic work conference, China will change the sound monetary policy to one of tightening monetary policy, as it battles to rein in a soaring stock market and a red-hot economy at risk of overheating and inflation.

Do you think China will have serious inflation in 2008?

source 

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