The People’s Bank of China (PBoC) raised banks’ required reserve ratio (RRR) on Sunday in a further effort to tighten monetary policy, the Financial Times reported. The 50 basis point rise to 20.5% will take effect on April 21, and is the fourth time this year the PBoC has hiked RRR. China’s leaders have repeatedly expressed their concern about rising inflation – which reached an almost three-year high of 5.4% in March – and have used a combination of interest rates, RRR, price caps and other tools to combat price rises. A further option for Chinese policymakers would be to allow a faster appreciation of the renminbi, thus making imports cheaper and reducing foreign capital inflows. But recent comments made to the IMF’s governing body indicate that the country will resist international pressure to more freely float its currency.