China raised lending rate... again..

China raised its benchmark one-year lending rate by 27 basis points to 7. 29 percent, the highest level in nine years, in a continuing effort to cool the economy and curb inflation. It is the fifth time this year that the Chinese authorities have increased rates. The annual rate of inflation in the mainland accelerated to 6.5 percent in August, the highest since December 1996, as the economy expanded at an annual rate of 11.9 percent in the second quarter, the fastest pace in 12 years. Aside from raising rates, analysts also expect China to increase the amount of reserves that banks should deposit with the central bank to cut bank lending and ease consumer spending.