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In chinese lastest move to fight inflation，the government said that Chinese banks would be required to set aside large cash reserves.Chinese central bank said that affective Monday，large banks here would have to set aside 20.5 percent of their cash，an increase of half percentage point.Th emove essentially reduces amount of cash avaliable for loans.
It was the fourth time this year that the central bank has raised the required reserve ratio.
the decision came just days after China said that inflation rose at fastest pace in more than two and a half years.
In March,the consumer price index climbed to5.4 percent ,even though economic growth modertated slightly .China is worried that some of the high levels of inflation in years could disrupt a booming economic that is being fueled by heavy
bank lending. Food prices have been soring in China,but wages,housing prices and raw material are also rising.
It was the fourth time this year that the central bank has raised the required reserve ratio.
the decision came just days after China said that inflation rose at fastest pace in more than two and a half years.
In March,the consumer price index climbed to5.4 percent ,even though economic growth modertated slightly .China is worried that some of the high levels of inflation in years could disrupt a booming economic that is being fueled by heavy
bank lending. Food prices have been soring in China,but wages,housing prices and raw material are also rising.
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