China Central Bank Raises Rediscount, Re-loan Rates, First in 2 Two Years

Dec. 30 -- The People's Bank of China has raised the re-discount rate to 2.25% from 1.80%, reports said citing information on the central bank website.

At the same time, the one-year re-lending rate was hiked by 52 basis points to 3.85%. On December 25, the central bank raised its benchmark deposit and lending rates by 0.25 percentage points, representing a second rise in a short-term period in an effort to curb inflation.

PBoC has raised the one-year yuan deposit rate to 2.75% and one-year yuan lending rate to 5.81%, effective December 26, 2010.

On December 10, the bank made a 50 basis points increase in commercial banks' reserve requirement ratio.