For the third time in less than six months, China has raised its benchmark lending rate in a growing effort to slow the pace of growth in the rapidly-expanding economy. The one-year lending rate will increase to 6.06 percent from 5.81 percent, effective tomorrow, the PeopleÃ¢â‚¬â„¢s Bank of China said on its website today. The one-year deposit rate will rise to 3 percent from 2.75 percent.
Ã¢â‚¬Å“Global markets may begin to see the frequent rate hikes as a sign that a growth slowdown in China is inevitable,Ã¢â‚¬Â said Dariusz Kowalczyk, a Hong-Kong based economist at Credit Agricole CIB. Ã¢â‚¬Å“But in the end, the move will be seen as a sign of strength, with solid growth momentum allowing policy makers to raise rates.Ã¢â‚¬Â
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