This is part of a story on china & interest rates. "SHANGHAI/TAIPEI (Reuters) - The central banks of China and Taiwan tightened policy on Tuesday to drain money from the banking system, marking intensified efforts in the region to head off inflation and cool asset bubbles.
A week after raising bank reserve ratio requirements for the first time since June 2008, the People's Bank of China (PBOC) lifted the auction yield on one-year bills in its regular open market operation for a second week in a row, and by more than expected.
Premier Wen Jiabao told a cabinet meeting that China would take steps to deal with inflationary expectations.
"China will maintain reasonable growth in money supply and credit, focus on optimizing the credit structure and carefully manage the pace of lending to reduce financial risks," Wen said, according to a statement posted on the government's website, www.gov.cn.
China is a story all traders should keep up to date with, especially if involved in the resources sector. Regards Buffett
