China raises rates by 0.27%

The People's Bank of China on Friday 18 August announced increases of 0.27 percent for key lending and deposit rates in an attempt to slow investment and prevent the economy from overheating.

Effective from Saturday, the benchmark one-year lending interest rate offered by commercial banks will rise to 6.12 percent, the People's Bank of China said on its website.

The government is worried that an investment boom that is driving high growth could stoke inflation and leave banks with dangerously h