China may fine-tune its monetary policy further

Note: This section contains information in English only.
Source: Marketwatch
© Scanpix/AP

China started to adjust its monetary policy in order to adapt the financial system of the country amid deteriorating economic environment. The first step the China's government undertook was a reduction in reserve requirement ratio to 21%. The cut is likely to inject about 350 billion yuan into economy. However, analysts claim the country will adjust the policy further; for example, China may increase interest rates, according to Credit Suisse forecast.

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