It was accompanied by an equally unforeseen one percentage point cut in the reserve requirement for all but the five largest banks.

It was the tenth reserve requirement increase this year, but the first to exceed a half-point rise.

Increases in reserve requirement helped to curb lending by reducing the funds that banks have available to back new loans.

Last week, interest rates and banks' reserve requirement ratios were lowered for the fifth time since the end of last year.

Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.