Dec. 26 -- China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years and more moves may follow.
The benchmark one-year lending rate will rise by 25 basis points to 5.81 percent and the one-year deposit rate will climb by the same amount to 2.75 percent, effective today, the People’s Bank of China said in a one-sentence statement on its website late yesterday.
Economists surveyed by Bloomberg News earlier this month forecast one percentage point of increases by the end of 2011. Premier Wen Jiabao is seeking to slow gains in property values and consumer prices that are making it harder for families to buy homes and pay for food. Bank lending and a wider-than- forecast November trade surplus have pumped more cash into an economy already awash with money.
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