China raises reserve requirements for banks by 0.5 percentage points

The People's Bank of China raises reserve requirements for banks by 0.5 percentage points, Bloomberg reported, citing the press release of the Central Bank of the country. The last time China announced to raise reserve requirements for banks (by 50 basis points) since January 20, 2011. Raising reserve requirements is regarded as part of efforts by Chinese authorities to reduce inflation and prevent economic overheating. Consumer inflation in China accelerated in January to 4,9% from 4,6% in December. Source: Finmarket