China Raises Bank Reserve Ratios 0.5% to Cool Inflation

May 12 (Bloomberg) -- China raised banks’ reserve requirements for the fifth time this year to restrain prices, underscoring the risk that tightening measures will cause a slowdown in the world’s second-biggest economy. Reserve ratios will increase 0.5 percentage point from May 18, the People’s Bank of China said on its website today. Bloomberg's John Liu discusses the ratio hike with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)