China raises reserve ratio full percentage point

The People's Bank of China upped its reserve requirement ratio by 100 basis points for the first time this year in a fresh bid to cool its overheating economy.

The central bank will require the country's financial institutions to hold 17.5% of their total deposits in reserves under the new measure announced Saturday. It will implement the measure incrementally, requiring banks to hold 17% from 15 June and 17.5% from 25 June.

The move is expected to drain Rmb422 billion ($60.9 billion). The

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