China's economy 'overheating a little bit'

People's Bank of China governor Zhou Xiaochuan said on Friday 28 April that the increase in the official Chinese benchmark lending rate is intended to rein in growth as the economy is "overheating a little bit".

"The previous interest rate level was no longer appropriate," Zhou said.

The People's Bank of China raised its key one-year benchmark loan rate by 27 basis points to 5.85 pct on Thursday, and the PBOC said the rate hike, the first one in 18 months, was designed to "further enhance macro

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