PBOC raises reserve ratio

The People's Bank of China has ordered major commercial banks to set aside more money in reserves in a move to slow its economy.

The required reserve ratio will increase by 50 basis points to 11 per cent with effect from May 15, the central bank announced in a statement on its website.

"Raising the reserve ratio is a rather easy and flexible measure for the central bank," said Wang Xiaoguang, an economist at the National Development and Reform Commission, according to Xinhua news agency.

"But it