China's central bank has issued another order for lenders to increase their cash reserves as they struggle to curb inflation.
The People's Bank of China raised the reserve requirement ratio by half a percent ((50 basis points)), effective May 18. The order means China's biggest lenders must keep up to 21 percent of their capital in their vaults, and not lend it out. The government hopes by limiting cash in the economy, it can slow inflation.
Thursday's order comes a day after Beijing said consumer prices rose 5.3 percent in April. It marks the fifth time this year the central bank has ordered an increase in cash reserves as part efforts to tighten the flow of money to slow inflation. The government also has raised interest rates several times.