China makes two rate hikes to cool inflation

The People's Bank of China increased its benchmark rate by 18 basis points to 7.02% and its deposit rate by 27 basis points to 3.6% in an effort to stabilise inflationary pressures.

The central bank released figures last Monday that showed inflation reached a ten-year high of 5.6% last month. The official target is 3%. A rise in food prices was behind the hike, with the cost of meat rising 45%.

The rate increase is the fourth this year.