Sentence examples for required reserves from inspiring English sources

Required reserves play little role in the monetary policies of developed economies.

Moreover, the Fed pays interest on excess reserves as well as required reserves.

BEIJING (Reuters) — China raised banks' required reserves again on Friday, the latest move in a monetary tightening cycle that many had thought would be suspended after Japan's devastating earthquake.

With inflation running at the fastest rate in nearly three years, China has taken a series of policy actions to rein in prices, raising interest rates and banks' required reserves multiple times, ordering banks to lend less and speeding up the pace of currency appreciation.

Given that the Reserve Bank of India on Friday issued a sharp warning on inflation at the same time as it tightened required reserves, a half-point increase in interest rates is likely to follow next month, said Prakriti Sofat and Rahul Bajoria of Barclays Capital.

They also held required reserves for "transaction deposits" that include checking deposits.

It is the largest cut in Chinese banks' required reserve ratio (RRR) since late 2008, the nadir of the global financial crisis.

The Bank of Korea raised the required reserve ratio on demand deposits to 7percentt from 5percentt, it said Thursday in a statement.

The 50-basis-point increase, which takes effect on Dec. 20, lifts required reserve ratios to 19 percent for the country's biggest banks, a record high.

It has cut banks' required reserve ratio in three steps since November to free up new lending, and it cut interest rates in June and July.

The central bank also adjusts the required reserve ratio, which determines how much cash is available to banks for lending, more often than it does interest rates.