China likely to raise lending rate by 0.72 percentage points

0 Comments | AFP, September, 2004

BEIJING (AFP) — China is expected to raise its one-year benchmark lending rate to 5.76 percent from 5.04 percent next month but will keep the 1.98 percent benchmark deposit rate unchanged, state media said.

"We've received official notice to raise the lending rate but to keep the deposit rate unchanged," an official from a major commercial bank told the Securities Market Weekly, which is affiliated with the country's securities regulator.

The hike is expected to come during next month's October National Day holidays, it said Tuesday.

The Securities Times newspaper has also suggested in recent weeks that the government might raise interest rates in the near term.

China's central bank has been facing mounting pressure to raise rates with the consumer...