China Raises Reserve Ratio for Banks

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BY AARON BACK AND TOM ORLIK

BEIJING--China's central bank said Friday it will raise the share of deposits banks must hold in reserve by half a percentage point, the third increase this year, as inflationary pressures remain in the spotlight.

The increase, which takes effect March 25, comes after the country's consumer price index rose 4.9% in February, unchanged from January's 4.9% rise, and economists have warned that inflation pressures will stay strong in the coming months.

"It is a less high-profile move than hiking interest rates would have been," said ...

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