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China yesterday (Tuesday) accelerated its campaign against surging inflation by raising interest rates for the third time since mid-October in advance of reports expected to suggest prices are racing ahead at the fastest pace the nation has seen in 30 months.
The benchmark one-year lending rate today will increase to 6.06% from 5.81%, the People's Bank of China (PBOC) said on its Website. The one-year deposit rate will rise to 3% from 2.75%.
The move was hardly cheered by investors, but most analysts believe it was the appropriate action to take considering the country's torrid inflation.