People's Bank of China (the central bank) has increased the benchmark deposit interest rate by 0.27 percentage point from the current 3.33 percent to 3.60 percent. Meanwhile, the bank increased one-year lending interest rate by 0.18 percentage point from the current 6.84 percent to 7.02 percent. The new rates will be effective from August 22, 2007.
The bank announced that the adjustment aims to regulate the money supply and curb inflation.
This is the fourth time this year that the central bank increased the interest rates.