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China raises interest rate for 2nd time in 3 months
By Zhang Fengming |
December 25, 2010, Saturday
|
Online Edition
Online Edition
CHINA today raised interest rates, the second increase in three months, to tame inflation and curb assets price bubble.
From tomorrow, the one-year benchmark deposit rate will rise to 2.75 percent from 2.5 percent while the one-year benchmark lending rate will increase by the same 25 basis points to 5.81 percent, the People's Bank of China said on its website today.
Except the current deposits rate, which is unchanged at 0.36 percent, rates on deposits and loans of other maturity all raise.
"The rate increase is well expected," said Lu Zhengwei, an Industrial Bank senior economist. "For sure, inflation is its target."
China's consumer price index, the main gauge of inflation, rose 5.1 percent in November, a 28-month high. Food prices jumped 11.7 percent in December, also the high since July 2008.
Chinese consumers are feeling the biggest pinch of rising cost of living in a decade, a central bank survey showed earlier this month, indicating the pressure on policy makers to tame inflation.
Consumer's price satisfaction index fell to 13.8 percent in the quarter, the lowest since data were complied in the fourth quarter of 1999, said the central bank survey.
From tomorrow, the one-year benchmark deposit rate will rise to 2.75 percent from 2.5 percent while the one-year benchmark lending rate will increase by the same 25 basis points to 5.81 percent, the People's Bank of China said on its website today.
Except the current deposits rate, which is unchanged at 0.36 percent, rates on deposits and loans of other maturity all raise.
"The rate increase is well expected," said Lu Zhengwei, an Industrial Bank senior economist. "For sure, inflation is its target."
China's consumer price index, the main gauge of inflation, rose 5.1 percent in November, a 28-month high. Food prices jumped 11.7 percent in December, also the high since July 2008.
Chinese consumers are feeling the biggest pinch of rising cost of living in a decade, a central bank survey showed earlier this month, indicating the pressure on policy makers to tame inflation.
Consumer's price satisfaction index fell to 13.8 percent in the quarter, the lowest since data were complied in the fourth quarter of 1999, said the central bank survey.
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