China’s central bank raised the required reserve ratio for the country’s banks by 50 basis points to 18.5% on Friday night, the Wall Street Journal reported. The ratio hike, its second in as many weeks, is the latest in the bank’s attempts to curb lending and mop up excess liquidity in China’s economy. China’s consumer price inflation was 4.4% year-on-year in October, which could jeopardize the government’s annual target of 3%. The inflation is largely driven by higher food prices, a 20% year-on-year rise in bank lending – which could breach the government’s annual lending limits – and possibly also speculative investment cashing in on higher interest rates and an expected rise in the renminbi. Most economists expect further ratio hikes and other measures to control inflation.