China Signals Full Recovery with Rate Hike
By wchung | 08 Sep, 2025

China raised its benchmark lending rate Tuesday for the first time since emerging from the global crisis as the government tries to cool inflation and guide rapid growth to a more sustainable level.

An interest rate hike was widely expected at about this time following the government’s declaration earlier this year that China, the world’s second-largest economy, had recovered from the global slump.

The interest rate on a one-year loan was raised by 0.25 percentage points to 5.56 percent, the central bank said. The one-year rate paid on deposits was raised, also by 0.25 percentage points, to 2.5 percent.

Communist leaders are trying to guide China’s economy back to a more sustainable growth rate after it expanded by 10.3 percent in the second quarter.

They also are trying to control politically dangerous consumer inflation that rose to 3.5 percent in August over a year earlier, above the official annual target of 3 percent. Analysts believe inflation rose further in September.

BEIJING (AP)