With China celebrating the new year, central bank officials had to break into their holiday to consider changing rates. But it cannot have taken them long to decide on an increase.

After two increases late last year, many economists thought it was only a matter of time before the People’s Bank of China delivered another rise in an attempt to tackle inflation with rising food prices a particular concern. On Tuesday it said it would lift rates for one-year deposits and one-year loans 25 basis points to 3 per cent and 6.06 per cent respectively.

Financial markets took the news in their stride. Copper, where Chinese buying is a big demand driver, slipped slightly before recovering most of the lost ground and trading at $9,974 a tonne for three-month metal, down from $10,045 on Monday.