On October 19, the People's Bank of China (Chinese central bank) announced that it will raise interest rates for the first time in nearly three years, lifting the benchmark deposit and lending rates by 0.25 percent effective from October 20.
The central bank said in its statement that the one-year deposit rate would increase to 2.5 percent from 2.25 percent, up 0.25 percent, while the one-year lending rate would rise from 5.31 percent to 5.56 percent, also up 0.25 percent.
The surprise move is seen as the most decisive step yet to scale back the massive monetary stimulus China injected into its economy during the financial crisis.