China’s Reserve-Ratio Hike Caps Asia Inflation Fight

China’s bank reserve-ratio increase capped a week of Asia escalating its fight against inflation, with South Korea and Thailand boosting interest rates and India importing onions, a curry staple, from historical enemy Pakistan.

China’s central bank yesterday told lenders to hold more deposits as reserves for the fourth time in two months, lifting required ratios by half a percentage point. The People’s Bank of China was acting in part to stem a surge in new loans at the start of the year after officials’ 2010 target was breached, analysts at JPMorgan Chase & Co. and HSBC Holdings Plc said.