The Chinese central bank announced interest rate increases Saturday in an apparent response to inflation fears.
The People's Bank of China said it will raise the one-year benchmark lending rate by 25 points to 5.81 percent and the benchmark deposit rate by the same amount to 2.75 percent, The New York Times reported.
China's economy has boomed through the global recession, affording room to rein in liquidity. The country has been growing at an average of 10 percent a year, and investment in big capital projects has both fueled the growth and pushed prices up.
This month the government reported the consumer price index rose 5.1 percent in November over a year ago, the largest rise in three years.
Xinhua, the state news agency, reported Dec. 17 Vice Premier Li Keqiang said, "More efforts should be provided to stabilize prices next year," and over the next five years growth rates should be defined "reasonably." He is expected to become prime minister in 2012.
Polls have shown popular concern about inflation, and China announced Dec. 3 it was tightening monetary policy from "relatively loose to prudent."
