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Chinese central bank raises interest rate
(chinadaily.com.cn)
Updated: 2004-10-28 19:30

The People's Bank of China, or China's central bank, announced Thursday to raise both lending and deposit interest rates 0.27 percentage point higher as from Oct. 29.

A statement posted on the People's Bank of China Web site announced the one-year lending rate would be increased to 5.58 percent from 5.31 percent, the first loan rate hike since July 1995.

The interest hike, which takes effect Friday, comes as the Chinese government tries to curb investment growth that continues to keep economic growth at more than 9 percent.

The one-year deposit rate will be raised to 2.25 percent from 1.98 percent, the first increase in the interest rate paid on savings since July 1993, the bank said.



 
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