That marked the first simultaneous use of the two monetary tools in a decade, as well as the eighth increase in reserve ratio since last July and fourth interest rate hike since last April.
The benchmark one-year deposit rate will be increased by 0.27 percentage point while the one-year lending rate will rise 0.18 percentage point starting from Saturday, the People's Bank of China said in a statement on its website.
After the announcement, the one-year deposit rate stands at 3.06 percent, slightly higher than the consumer price index growth of 3 percent in April. The one-year lending rate is now 6.57 percent.
The banks' reserve requirement ratio will be raised by 0.5 percentage points to 11.5 percent, effective from June 5, the central bank said.
The tightening measures came after a series of economic data suggested that the world's fourth largest economy is evolving towards overheating.
The gross domestic product grew 11.1 percent in the first quarter of the year while urban fixed asset investment soared 25.5 percent, official statistics showed.
Banks extended 422 billion yuan in new loans in April, bringing the amount for the first four months to 1.85 trillion yuan - more than half the total for the whole of 2006.
Inflation, measured by the consumer price index (CPI), grew three percent in April, barely meeting the central bank's target.
Why????
Who can tell me?
