The People’s Bank of China said Sunday that it would raise commercial banks’ required reserve ratio by 50 basis points from May 10, the Wall Street Journal reported. The required reserve ratio is the minimum percentage of deposits banks are required to keep on hand. The Chinese central bank announced during the Labor Day Holiday it would raise banks’ reserve requirements for the third time this year in an effort to curb a lending boom and building inflationary pressures. China’s currency fell against the US dollar on Tuesday, the first trading day after the holiday, on the announcement, which lowered market expectations that the yuan will resume its appreciation against the US dollar in the near term. Traders said the dollar is likely to continue to trade around RMB6.826, as Beijing is expected to maintain the dollar-yuan central parity rate.