Both China and the US appear to have turned a corner in terms of the easy monetary policy that has been a key part of recovery from the financial crisis. The Peoples Bank of China, the country's central bank, has raised the reserve ratios it requires banks to hold, thereby limiting the amount of capital available to lend, while the US Federal Reserve upped its discount rate by 25 basis points. The latter move has little practical effect as the rate applies to a now barely used emergency lending facility. It is more a signal of the future direction of monetary policy and an indication that real monetary tightening may be closer than previously expected.
展开▼
