Comment: 'Surprise' rate hike in China

The People's Bank of China yesterday raised its benchmark one-year lending rate to 5.85% from 5.58%. The move surprised analysts who had expected the authorities to stick to a combination of administrative measures and higher reserve requirements for banks to curtail credit growth.

COMMENT BY CENTRALBANKNEWS

The rate hike was the first since October 2004 and the central bank said it was intended to tighten liquidity and curb over-investment. These concerns have been around for some time along with

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