China Hikes Key Rates

The People's Bank of China says it will raise the one-year yuan lending rate to 5.56% from 5.31%, and the one-year yuan deposit rate to 2.5% from 2.25%, says an AFP report published in the Straits Times.

 

The raise--effective today and the first in nearly three years--is part of Beijing's efforts to control inflation and surging real estate prices.

 

"The widely anticipated move comes amid growing concerns that the red-hot real estate sector could overheat and derail the Asian powerhouse, despite government efforts to curb soaring property prices and rein in bank lending," says the AFP report.

 

 

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