Windsor Star

China raises bank reserves again

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BEIJING China ordered lenders on Friday to lock up more of their money at the central bank for the second time in two weeks, stepping up its battle to pull excess cash out of the economy before inflation has a chance to take off.

The People’s Bank of China said that it would increase banks’ required reserves by 50 basis points, its fifth such announceme­nt this year.

Including an earlier temporary increase, the move takes required reserve ratios to 18.5 per cent for big banks, a record high.

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