China raises interest rates, stepping up inflation fight

SHANGHAI (Reuters) - China's central bank raised interest rates for the second time this year on Tuesday, redoubling efforts to cool stubborn price pressures.

Inflation has been running within striking distance of a 28-month high of 5.1 percent hit in November and is expected to rise further in coming months.

Benchmark one-year deposit rates will be lifted by 25 basis points to 3.25 percent, while one-year lending rates will be raised by 25 basis points to 6.31 percent, the People's Bank of China said in a statement on its website.

The rises will take effect from April 6.

(Reporting by Soo Ai Peng and Tony Zhou; Writing by Koh Gui Qing; Editing by Dean Yates)