Bank reserve ratio raised to 16%

The central bank announced yesterday that the amount of money lenders must hold in reserve will be raised by half a percentage point, pushing the reserve requirement ratio to a record 16 percent.

It was the third time this year that the authorities have taken such a measure to ease liquidity-induced inflation growth, which was 8.3 percent in March, slightly lower than the 12-year high of 8.7 percent in February. Last year, it raised the ratio 10 times.

The hike will take effect on April 25, the People's Bank of China said in a statement.