China hikes reserve requirements to curb lending

The People's Bank of China said on Saturday that it is raising its reserve requirement ratio in order to limit loan growth and inflation.

The central bank said: "In order to strengthen liquidity management in the banking system and curb the excessive growth of money and credit, the central bank has decided to raise the renminbi reserve requirement ratio for depository financial institutions by 0.5 percentage points."

According to Xinhua, the state-owned news agency, the ratio is equal to the p