China raises rates again

The People's Bank of China decided on Friday to raise rates for the fifth time since March in order to curb rising inflation.

The benchmark one-year lending rate increased 27 basis points to 7.29%. The one-year deposit rate rose by the same amount, from 3.6% to 3.87%. The new rates are effective from tomorrow.

Inflation reached 6.5% in August after food prices continued to shoot up. Analysts expected the central bank to raise rates after the August figures were published earlier this week.