THE central bank yesterday raised the amount that lenders must hold in reserve for the fourth time this year.

The 0.5 percentage point increase in the reserve requirement ratio would take effect May 20, the People’s Bank of China said on its Web site.

That takes the ratio for big banks to a record 16.5 percent. The last increase in reserve requirements was announced April 16.

The move was aimed at strengthening China’s liquidity management and ensuring reasonable money and credit growth, the statement said.

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 Dec. 20.

It has raised reserve requirements 17 times over the course of that two-year tightening cycle. (SD-Agencies)