6 Apr 2011

China hikes interest rates

2:39 pm on 6 April 2011

China has raised interest rates for the second time this year, as it struggles to keep inflation in check.

The 0.25% rise takes the one-year deposit and lending rates to 3.25% and 6.31% respectively, the BBC reports.

The central bank is concerned that parts of China's economy may be overheating.

Consumer prices rose 4.9% in February compared with the same month a year ago, with food prices alone surging by 11%.