NEW YORK (CNNMoney.com) -- The People's Bank of China raised the reserve requirement ratio for its banks by a half-percentage point on Friday in an attempt to control the flow of new money and combat inflation.
China's increase is the second such move in days. The central bank also increased the reserve requirement ratio by 50 basis points on Nov. 10.
But China's central bank didn't touch interest rates. There has been much speculation around the world about a possible rate hike by China, and that has some investors on edge.
The reserve ratio increases are one method China can use to keep its strong economy from overheating.
But China's tightening comes as the Federal Reserve plans for more quantitative easing. The Fed plans to inject money into the economy by buying $600 billion in long-term Treasuries over the next eight months.
The Fed's plan has been attacked by many politicians and economists as a program that effectively undermines the value of the dollar. At the same time, U.S. officials have also been critical of China for keeping its own currency, the yuan, artificially low.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.86%||3.77%|
|15 yr fixed||3.09%||3.01%|
|30 yr refi||3.84%||3.78%|
|15 yr refi||3.10%||3.01%|
Today's featured rates:
More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More
Tax revenue and spending both rose in fiscal year 2017, which ended last month. But spending growth outpaced revenue growth, according new numbers from the federal government. More
This may go down as the year the world officially recognized Jeff Bezos's Midas touch. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
More companies are offering student loan repayment help to their employees. More