China central bank raises key interest rates

[April 05, 2011]  BEIJING (AP) -- China's central bank is raising key interest rates by a quarter of a percentage point as it tries to dampen high inflation.

The People's Bank of China said Tuesday that the increase lifts the one-year lending rate to 6.31 percent and the rate for one-year bank deposits to 3.25 percent.

Its fourth rate hike since October reflects concerns about overheating and excess liquidity in the Chinese economy that are driving up prices, especially of food.

China's consumer prices rose 4.9 percent in February, driven by an 11 percent jump in food costs.

[Associated Press]

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