Brazil Tightens Monetary Policy

Bank reserve requirements are increased.  Brazil's central bank increased reserve requirements on term deposits from 13% to 15% on Wednesday.  This will withhold currency from the money supply, as the country is now in recovery mode and expects GDP growth of 5.5% for 2010.  In the US, the required reserve is 10% on transaction deposits and zero on time deposits.  In China, the reserves required for large banks was recently increased to 16.5%.  Details at the WSJ.