For the fifth time this year, the People's Bank of China raised banks' reserve requirements 0.5 percentage point from May 18, boosting levels for the nation's biggest lenders to a record 21 percent, reports the South China Morning Post.
The increase followed reports showing inflation and lending exceeded economists' estimates in April, with prices rising more than 5 percent for a second month, says the newspaper.
Beijing has also accelerated gains in the yuan, which broke 6.5 per dollar for the first time since 1993 on April 29. A stronger yuan helps to reduce import costs, notes the Post.
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