China raises interest rates amid inflation fight

[July 06, 2011]  BEIJING (AP) -- China has raised a key interest rate for a third time this year as it tries to cool surging inflation.

The central bank said Wednesday the minimum lending rate will be raised 0.25 percentage points to 6.56 percent. The interest rate on deposits will rise by a similar margin to 3.5 percent.

The government is struggling to contain inflation that hit a 34-month high of 5.5 percent in May and is believed to have risen further in June.

[Associated Press]

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