Contrary to much speculation that China will once again tighten monetary policy, the PBC announced on Friday that it will increase the reserve requirements of major banks by another 50 basis points This is the second such increase this month and the fifth - this year, a move designed to curb the sharp growth in lending and try to cope with liquidity. Chinese central bank sharply rising inflation has attended over the past few weeks. And not in vain, as the data show an increase in the prices of food and basic metals. Movement in the value of the latter has returned to life pictures sudden burst of inflation in the second half of 2007 and the first half of 2008. The last movement on reserves followed to curb the prices of some key commodities such as natural gas, which was announced by the Government last week. Separately, Hong Kong, shows his concern about overheating - Friday HKMA lowered the required ratio of loan to value on mortgages, and raised the stamp tax on short-term real estate transactions.
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