China raises interest rates
Ann/ China Daily
China decided to raise interest rates and cut the withholding tax on interest income on Friday in a coordinated move to get the blistering economy onto a healthier footing.The benchmark one-year deposit and lending rates of commercial banks will be raised by 0.27 percentage point, effective from Saturday, the central bank said in a statement on its website. This is the third time in 2007 that China raised the one-year benchmark interest rates. Meanwhile, the State Council, reduced the withholding tax on interest income to 5 per cent from 20 per cent as of August 15. The National People's Congress authorised the government to change or abolish the tax last month.
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