China increased banks reserve ratio by 0.5%

By @ibtimes on

China's central bank decided to force banks to raise their deposits starting May 18 by 0.5%. This increase in the reserve ratio is the fifth such decision this year. Now big banks will be obligated to set aside 20.5% of the deposits as reserves at the central bank.

Inflation remains a top priority in China, thereby this decision was taken in an attempt to limit liquidity and keep inflation in the second largest economy under control, which seams to be threatening the economy due to its strong growth.

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