Central bank raises reserve ratio to 15.5%

The central bank yesterday announced that it would raise the reserve requirement ratio, or proportion of funds lenders must hold in reserve, by 0.5 percentage point to mop up liquidity and anchor prices.

Effective March 25, the upward revision - the second this year - will push the ratio to 15.5 percent, the People's Bank of China said on its website.

"The central bank move is targeted at mopping up liquidity, which is a driving force behind the continually rising prices," said Guo Tianyong, economist with the Central University of Finance and Economics. "But there is no close link between such moves and the stock market."