Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47527)	2/19/2012 9:43:39 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70692

February 18, 2012 China Takes New Step to Prime Its Slowing Economy By DAVID BARBOZA BEIJING — Determined to keep the domestic economy chugging along, China’s central bank said on Saturday that it would reduce the amount of cash reserves that banks need to hold, a move widely seen as encouraging stronger growth. The decision to cut the reserve ratio requirement for the nation’s biggest banks by half a percentage point, to 20.5 percent from 21 percent, effective next Friday, should make more money available for lending, adding a little extra juice to an economy that has begun to show signs of slowing. The cut is not a huge move. But with Europe struggling with a debt crisis and growth in the United States still relatively anemic, Chinese officials are worried that exports to its two biggest trading partners could collapse, and investment could slow here. The decision to reduce the reserve ratio comes after a similar cut in December, which followed more than a year of tightening measures aimed at taming inflation and a soaring property market. The country’s economic leaders have repeatedly moved to tighten bank lending. In recent months, inflation has moderated, though it ticked up in the most recent report. But analysts say there seems to be enough breathing room for policy makers to loosen money controls and take measures to ensure that China’s growth in a nation accustomed to boom times does not weaken substantially. Although economists constantly worry about China’s growth trajectory, government planners have managed to steer the economy away from disaster. China’s economy grew by over 9 percent last year. Economists are forecasting slower growth this year, to about 8 percent, a remarkable rate considering China is now the world’s second-largest economy after the United States.