China raises interest rates
Updated at 8:16 am on 7 July 2011
China has increased its main interest rates for the third time this year to try to curb inflation.
The People's Bank of China said its one-year lending rate would rise to 6.56% from 6.31% and its one-year deposit rate to 3.5% from 3.25%. They will take effect from Thursday.
The consumer price measure of inflation hit 5.5% in May, the highest rate for almost three years.
The BBC reports the government has made tackling inflation its top priority. Food prices are of particular concern as they are rising much faster than general prices.
Most economists had expected the central bank to increase rates this month.
Copyright © 2011, Radio New Zealand
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