While the government has been trying to avoid involving RMB appreciation as a means to combat inflation, it appears to be a more effective tool than merely using rate hikes and RRR increases. The PBOC announced over the weekend that it will raise the reserve requirement ratio ( RRR ) by +50 bps to 20.5%, effective April 21. Gold edged higher to 1489.7 and has been hovering around the record high level as sovereign debt concerns in the European periphery persists.