Growth deterioration made China cut the reserve requirement ratio ( RRR ) for all depository financial institutions by -50 bps, effective December 5, 2011 as reduction in inflationary pressure has lowered the need for tightening monetary policy. After announcing joint action to enhance liquidity support to the global financial system on December, central banks also moved unilaterally to stimulate the market. Low interest rates reduce the opportunity cost of holding gold and money printing measures implemented by central banks is equivalent to currency depreciation.