China Raises Banks' Reserve Ratio

BEIJING -- China has ordered its banks to hold back more money as reserves in a new move to curb lending and cool inflation.

The order Friday was China's second reserve increase in two weeks and came as Beijing tries to restore normal financial conditions and curb inflation after its recovery from the global crisis.

The central bank ordered lenders to set aside an additional 0.5% of their deposits.

The government is trying to cool pressures that pushed China's inflation rate to a 25-month high of 4.4% in October.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Opinion

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD

Apple Supplier Jabil Is Tumbling, But Its Sales Momentum Remains Strong

Apple Supplier Jabil Is Tumbling, But Its Sales Momentum Remains Strong