China raises interest rate

City A.M. Reporter
China's central bank raised interest rates for the second time this year Tuesday, redoubling efforts to cool stubborn price pressures.

Inflation has been running within striking distance of a 28-month high of 5.1 per cent hit in November and is expected to rise further in coming months.

Benchmark one-year deposit rates will be lifted by 25 basis points to 3.25 percent, while one-year lending rates will be raised by 25 basis points to 6.31 per cent, the People's Bank of China said in a statement on its website.

The rises will take effect from 6 April.