China hikes interest rates
Beijing: China has increased interest rates for the first time in nine years to cool down its fast-growing economy.

On Thursday, the People's Bank of China raised benchmark rates on one-year yuan loans to 5.5 per cent from 5.31 per cent and the rate on one-year deposits to 2.25 per cent from 1.98 per cent.

The rates were last raised in 1995. China has been growing at over 9 per cent in the last few quarters.

Analysts believe if the economy does not slow down, prices of several commodities like metal and oil may go out of control.

The Chinese central bank had already banned loans to various sectors like auto, cement and steel at the start of the year to restrict uncontrolled growth of credit in the economy.
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