HONG KONG — For the second time in less than five weeks, China’s central bank has moved to limit lending to consumers and businesses by ordering big commercial banks to park a larger share of their deposits at the central bank.
The step, announced late Friday, came earlier than most economists had expected and was aimed at forestalling a rekindling of inflation by controlling a rapid expansion in bank loans. Families, real estate developers and industrial companies have been borrowing heavily and have started paying more for everything from food to apartments.
Full Story: China Moves to Curb Inflation by Tightening Bank Credit – NYTimes.com