The Seeking Alpha website reports:

The People's Bank of China raised interest rates (effective Saturday) for the seventh time this year, increasing the benchmark one-year lending rate by 0.27% to 7.29%, a nine-year high and raising the rate on deposits by the same amount to 3.87%. The PBOC has also increased banks' reserve requirements on seven occasions in 2007. An economist at the State Information Center in Beijing commented the PBOC's biggest concern is inflation, because "people get negative returns on bank deposits, and that's fueling investment and bubbles in the stock and property markets."

To read more:

http://seekingalpha.com/article/47122-people-s-bank-of-china-hikes-rates-again?source=d_email