China is to raise the minimum capital requirement for banks to a record 21 per cent, in the fifth such increase this year, the central bank announced in Beijing on Thursday, according to dpa. The measure, which increases the rate by half a percentage point, is aimed at curbing inflation and takes effect on May 18. Consumer inflation rose to 5.3 per cent on the year in April against a target of 4 per cent. The Chinese authorities have also hiked the key interest rate four times since October in an attempt to curb the effects of rising food and other prices.
