Mar.17 - China's central bank announced on Saturday that the one-year benchmark interest rates are raised by 0.27 percentage points as of March 18.

 

The one-year rate for deposits is increased to 2.79 percent and that for loans to 6.39 percent, according to the People's Bank of China (PBOC), the central bank.

 

The central bank raised the rates for both deposits and loans by the same margin in August last year.

 

China's economy surged by 10.7 percent last year, the fourth consecutive year of double-digit growth, driven by hefty investment and rocketing foreign trade. Both of them registered a 24 percent year-on-year growth last year.

 

The central bank raised commercial banks' deposit reserve ratio in late February by 0.5 percentage points to rein in excessive bank lending.

 

Raising the interest rates will help rationalize the growth of investment and lending, maintain price stability and promote healthy and fast development of the economy, the bank said in a statement on its website