China raises interest rates for third time to curb inflation

China has raised interest rates for the third time in four months in an attempt to cool inflation.

The one-year lending rate is now at 6.06%, up from 5.81%, while its one-year deposit rate now stands at 3.0% from 2.75%. Last year, inflation was at 3.3%, above the official target of 3%, although many commentators fear CPI has escalated to around the 5% mark on the back of soaring commodity prices. This has resulted in the Chinese government raising this year's CPI target to 4%. In addition to the interest rate rise, the People's Bank of China has raised the level of deposits the county's biggest lenders can hold in reserve in an attempt to tighten the highly liquid economy.