China’s central bank raises lending rates by 0.27 pct pts

Apr. 28, 2006 (China Knowledge) – The People’s Bank of China has announced lending rate hikes for all financial institutions beginning today. In a statement published on the central bank’s official website, the bank seeks to tighten regulations controlling the overheated demand for investment loans while at the same time improve its financial aid to segments that need more assistance.One-year loan rates will be increased by 0.27 percentage points to 5.85% from 5.58%. For six-month loans, the new loan rate is 5.40%, up from 5.22%.Lending rates for one to three-year loans are set at 6.03%, up from 5.76%. For three to five-year loans, the adjusted rate is 6.12%, up from 5.85%. Lastly, for all loans above the span of five years, a lending rate of 6.39% will apply, instead of the previous 6.12%.

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