China’s Monetary Policy Is `Too Tight,’ Bankers Say

From Bloomberg:

Chinese bankers say monetary is too tight and their expectations for interest rates to rise have eased, a central bank showed.

Policy is “tight” or “too tight,” according to about two-thirds of 2,900 heads of financial institutions surveyed by the ’s this quarter. The results, published on the central bank’s Web site today, didn’t give more detail on reduced expectations for a rate increase next quarter.

’s central bank this month ordered lenders to set aside a record proportion of their deposits as reserves, seeking to cool as and raw-material costs surge. has kept rates on hold in 2008, after six increases last year, to avoid attracting money from abroad that may stoke gains in the world’s fourth-largest economy.

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