Tuesday, April 5, 2011

Chine raises rates

BEIJING (AP) -- China raised key interest rates Tuesday for the fourth time since October as it tries to dampen high inflation.
The People's Bank of China, the country's central bank, said the quarter-percentage-point increase lifts the one-year lending rate to 6.31 percent and the rate for one-year bank deposits to 3.25 percent.
The series of rate hikes reflects concerns about overheating and excess liquidity in the Chinese economy that are driving up prices, especially of food.
China's consumer prices rose 4.9 percent in February, driven by an 11 percent jump in politically sensitive food costs that account for half or more of household spending among the millions of Chinese who have seen little benefit from three decades of economic reform.
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Comment: Still behind the curve

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