China raises banks' reserve requirements again

China's central bank on Tuesday raised the amount that lenders must hold in reserve for the fifteenth time since the middle of 2006.

The 0.5 percentage point increase in the reserve requirement ratio would take effect on March 25, the People's Bank of China said on its Web site, www.pbc.gov.cn.

That takes the ratio for big banks to a record 15.5 percent. The last increase in reserve requirements was announced on Jan. 16.

The central bank has also raised interest rates eight times since the start of its latest tightening cycle in April 2006. The last interest rate increase was announced on Dec. 20.