Bank reserve ratio up

The central bank announced on Saturday an increase in the amount lenders must hold in reserve by a full percentage point, which analysts said indicates the liquidity problem is still serious.

After the hike, which will be implemented in two steps, one on June 15 and another on June 25, each by half a percentage point, banks' reserve requirement ratio will reach 17.5 percent.

The move shows that the authorities will maintain the current tight monetary policy despite the massive earthquake that hit Sichuan and neighboring regions on May 12, said Peng Xingyun, economist with the Chinese Academy of Social Sciences.