China hikes reserve ratio to slow economy
Afp, Beijing
China's central bank on Sunday ordered major commercial banks to set aside more money in reserves in an effort to slow its economy after higher-than-expected first-quarter growth figures. The required reserve ratio will rise by 50 basis points to 11 percent with effect from May 15, the People's Bank of China announced in a brief statement on its website, but government-employed economists said more might be needed. "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.
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