The People's Bank of China raised benchmark lending and deposit rates by a quarter of a percentage point on Tuesday, in the latest tightening move aimed at reining in inflation pressures.
The central bank said in a statement it will raise the one-year yuan lending rate to 6.31% from 6.06%, and the one-year yuan deposit rate to 3.25% from 3%.
As with previous such moves by the central bank, the increase was announced on a national holiday when businesses and most securities markets are closed. The move takes effect from Wednesday.
The last time the PBOC raised benchmark interest rates was on Feb. 8, following two other increases last year.
While further tightening measures were largely anticipated, the timing is likely to come as a surprise to many analysts.
The move falls during China's tomb-sweeing festival, catching many market participants off-guard as markets had yet to open for the week.
China's consumer-price index rose 4.9% in February from a year earlier, unchanged from January's 4.9% rise, and economists have warned that inflation pressures will stay strong in the coming months.
