China increases loan interest rates

The People's Bank of China (central bank) announced an increase in loan interest rates to ensure a healthy economic growth on April 27. The loan interest rate of the bank for one year increased 0.27 percentage points to 5.85 percent and all other loan interest rates will be adjusted accordingly. However, the bank has not announced any change for deposit interest rates. The increase in loan interest rates came after the announcement of 10.2 percent quarterly economic growth, which was above the forecasts. This is the first time that central bank increases the loan interest rate since October 28, 2004.