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.
The central bank moved after reports yesterday showed inflation and lending exceeded economists' estimates in April, with consumer prices rising more than 5 percent for a second month. Premier Wen Jiabao aims to tame inflation that is spreading beyond food to other goods, while sustaining growth as the economy shows signs of cooling.
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