PBOC raises interest rates

The People's Bank of China is the second time since the beginning of this year, raises interest rates on an annual loans and deposits in national currency by 0.25 percentage points, according to a statement posted on the site of the Chinese Central Bank. As a result, the base rate from 6 April 2011 on the annual deposits was 3.25% for loans - 6.31%. The first rate increase this year to combat accelerating inflation at 0.25 percentage point was made in February this year. Previously, rates were raised in October and December 2010. In March, the People's Bank of China has once again raised the reserve requirements on banks for deposits in national currency by 0,5 percentage points. Fighting inflation is declared by the Chinese authorities priority of economic policy in 2011. In 2010, inflation exceeded the target of 3% and amounted to 3,3%. In February this year, inflation reached 4.9%. Chinese authorities announced their intention to keep inflation in 2011 at around 4%, but according to some economists, to achieve this would be difficult. Adviser to the Chinese Central Bank, Professor of Tsinghua University Li Daokuy previously suggested that inflation in 2011 will reach 5%. On materials RIA Novosti