China’s Banks to Boost Reserves

Measure aims at curbing inflation while sustaining growth.

China raised banks’ reserve requirements for the fifth time this year to restrain prices, underscoring the risk that tightening measures will cause a slowdown in the world’s second-biggest economy.

Reserve ratios will increase 0.5 percentage point from May 18, the People’s Bank of China said on its website today. That will boost levels for the nation’s biggest lenders to a record 21 percent.

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