China raised banks' reserve requirements for the fifth time thisyear to restrain prices, underscoring the risk that tighteningmeasures will cause a slowdown in the world's second-biggesteconomy.
Reserve ratios will increase 0.5 percentage point from May 18,the People's Bank of China said on its website today. That willboost levels for the nation's biggest lenders to a record 21percent.
The central bank moved after reports yesterday showed inflationand lending exceeded economists' estimates in April, with consumerprices rising more than 5 percent for a second month. Premier WenJiabao aims to tame inflation that is spreading beyond food toother goods, while sustaining growth as the economy shows signs ofcooling.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
