China hikes rates to check credit, investment

China raised interest rates on Friday for the third time this year after the economy logged a growth of 11.9% in the second quarter - its fastest annual rate in more than 11 years.

The People's Bank of China raised the one-year deposit rate by 0.27bps to 3.33%, and the one-year lending rate by 0.27bps to 6.84%. The central bank said the increases would keep credit and investment in check, and stabilise inflationary expectations.

The central bank had last raised benchmark interest rates on May 18 when it raised commercial banks' one-year deposit rate by 0.27bps to 3.06%, and the one-year lending rate by 0.18bps to 6.57%.