China hikes bank reserves in move to cool lending

BEIJING (AP) — Chinese banks were ordered to set aside more reserves Wednesday in a new move to curb lending as Beijing tries to cool rising inflation.

The central bank's order came on the eve of Thursday's release of figures that are expected to show inflation surged past 4 percent in October, above the government's 3 percent target. September inflation was 3.6 percent.

Consumer prices are especially sensitive in a society where poor families spend up to half their incomes on food. Rising incomes have helped to offset price hikes, but chronic inflation erodes the value of savings and raises the prospect of unrest.

While other governments try to shore up weak growth, …