(Xinhua)
Updated: 2007-12-08 16:33

China will raise the reserve requirement ratio by one percentage point for commercial banks in an effort to cool the booming economy, the central bank announced Saturday.

Related readings:  Bank reserve ratio raised to cool economy  Reserve ratio hike fails to slow indices  Central bank raises rates, reserve ratio  'Still room' to raise reserve ratio

The move, which will take effect on December 25, will push the ratio to a new high of 14.5 percent, after it reached a 10-year high of 13.5 percent on November 26.

This is the country's tenth time to raise the reserve requirement ratio this year, which aimed at "strengthening liquidity management in the banking system and checking excessive credit growth", the People's Bank of China said in a statement posted on its Web site.