China raises interest rates for the first time since 2007

China raises interest rates for the first time since 2007For the first time in three years, and as a tool to fight inflation, the People’s Bank of China raised the benchmark lending and deposit rates, where the one-year deposit rate reached 2.5% from 2.25%., while the lending rate reached 5.56% from 5.31%.  The first such decision since Dec 2007 was made after China’s inflation rose to 3.5%