China has raised interest rates again to keep inflation in check and prevent the world’s fourth largest economy from overheating. The move was expected as one day earlier the government had reported that annual GDP growth accelerated by nearly 11.9%, the fastest rate in over 11 years.
The new benchmark one year deposit and lending rate for commercial banks is 6.84%. It is the Beijing central bank’s third rate increase since March and its fifth since April last year. The government has also raised the amount that banks have to keep in their reserves on eight occasions in just over a year.