Beijing increases banks' reserve level

CHINA yesterday raised banks' required reserves for the fourth time this year, extending the fight against liquidity and stubbornly-high inflation in the world's second-largest economy.

By increasing the amount cash lenders need to hold by 50 basis points to 20.5 per cent, China's central bank aims to reduce the amount of cash banks have to loan to customers, curbing inflation, which rose from 4.9 per cent in February to 5.4 per cent in March.