The People's Bank of China (PBOC), the central bank, announced Tuesday it would raise benchmark one-year borrowing and lending rates by 25 basis points beginning Wednesday. 

The rate hikes come amid increasing pressure on the Chinese government to control inflation. 

After the hikes, the benchmark one-year deposit interest rate will climb to 3 percent, while the one-year loan interest rate will reach 6.06 percent. 

As for two-year and three-year deposits, the interest rates will be 35 basis points higher to 3.9 percent and 4.5 percent, respectively. The interest rate for mortgage and other loans of more than five years will rise 0.2 percentage point to 6.6 percent.

source:China Daily