China Raises Interest Rates for Fourth Time Since Financial Crisis
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China has raised interest rates for the fourth time since the end of the worldwide financial meltdown in an attempt to constrain inflation and limit the potential risk of asset bubbles in the world's fastest-growing economy.
The People's Bank of China said the benchmark one-year lending rate will increase from 6.06 percent to 6.31 percent starting Wednesday. The one-year deposit rate was also lifted, going from 3.00 percent to 3.25 percent.
Inflation in China accelerated to 5.2 percent last month, the fastest pace since July 2008. Consumer prices in the country rose 4.9 percent in February from a year ago, ahead of the government's full-year target of 4 percent.
On March 23, central bank Deputy Governor Yi Gang said interest rates were at a comfortable level and he was not concerned. This sentiment seems to contradict the action to raise rates on Tuesday.
The People's Bank of China said the benchmark one-year lending rate will increase from 6.06 percent to 6.31 percent starting Wednesday. The one-year deposit rate was also lifted, going from 3.00 percent to 3.25 percent.
Inflation in China accelerated to 5.2 percent last month, the fastest pace since July 2008. Consumer prices in the country rose 4.9 percent in February from a year ago, ahead of the government's full-year target of 4 percent.
On March 23, central bank Deputy Governor Yi Gang said interest rates were at a comfortable level and he was not concerned. This sentiment seems to contradict the action to raise rates on Tuesday.
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