Thursday, December 20, 2007

China raises rates again

There is at least one central bank taking the inflation threat seriously.

Dec. 20 (Bloomberg) -- China raised interest rates for the sixth time this year to cool the world's fastest-growing major economy after inflation accelerated at the quickest pace in 11 years.

The benchmark one-year lending rate will increase by 0.18 percentage point to a nine-year high of 7.47 percent, starting tomorrow, the People's Bank of China said today on its Web site. The one-year deposit rate will rise by 0.27 percentage point to 4.14 percent.