Weekly Fundamentals - China Accelerates Tightening...

The People's Bank of China (PBOC) announced on Friday that it would raise the reserve requirement ratio (RRR) by +50 bps to 19.5%, effective February 24. The 8th hike RRR in the current cycle and the second one this year reflected the government's commitment to curb inflation. Most investors concern about the impacts of tightening on China's growth and commodity demand outlooks. While commodity prices may be weighed down initially as the measures were announced, the longer-term outlook should remain robust. Strong economic growth in China will not be damped easily.

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Weekly Fundamentals - China Accelerates Tightening...