China raised interest rates for the first time in nearly three years, in a surprise move that could reflect official concerns about increasing inflationary pressures in the economy.
The decision to lift the benchmark deposit and lending rates by 0.25 percentage points is the most decisive step yet to scale back the massive stimulus that China injected into its economy during the financial crisis, and follows a strong rebound in growth.
The move comes after a series of policy tightening measures in other Asian economies in recent weeks in a bid to contain inflation amid concern that loose US monetary policy is prompting a flood of liquidity into the region.
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