PBOC's Wu says room for reserve requirement hikes

China has more room to raise the level of reserves that commercial lenders are forced to store with the central bank, a senior People's Bank of China (PBOC) official said Thursday 8 March.

But central bank vice-governor Wu Xiaoling also told reporters on the sidelines of a forum that a permanent fix is needed to deal with the root cause of China's liquidity problems.

"There is more room to hike the reserve requirement but we can't always rely on that (tool). We have to permanently solve the i