央行27日宣布，自2006年4月28日起上調金融機構一年期貸款基準利率0.27個百分點，由現行的5.58%提高到5.85%，其它各檔次貸款利率也相應調整，存款利率保持不變。央行此舉是自04年10月以來首次加息，意在為中國過熱的經濟降溫。

The central bank announced yesterday that it would raise the minimum rate banks charge on one-year loans by 27 basis points to 5.85 per cent, the first hike since October 2004.  The rate rise, effective today, is seen as an attempt to slow rapid lending growth and an investment boom. But the People's Bank of China kept its benchmark one-year deposit rate unchanged at 2.25 per cent. "It's a very timely move as the first-quarter economic figures point to signs of an overheating economy in the making," said Li Yongsen, an economist with Renmin University of China. The economy grew by a spectacular 10.2 per cent in the first quarter, leading to some economists worrying about an overheated economy. Fixed-asset investment, a closely watched economic indicator, jumped by 27.7 per cent in the same period, up from the previous year's 25.7 per cent. Much of the bank lending is pouring into factories, buildings and other fixed assets. The central bank's concern over the higher-than-expected lending growth may be the major reason prompting it to raise the lending rate, Li said. "The central bank is apparently concerned about these figures, especially the robust lending growth," Li said. "That's why it has resorted to lending rate hikes instead of a reserve deposit ratio increase. "Compared with requiring banks to lock up more deposit reserves, a rate hike is more effective in reining in lending growth," the economist said. While the central bank rate increase is intended to discourage lending in general, the government has also taken more targeted measures in sectors where growth appears to be outstripping demand. Fuelled by growing lending and a swelling trade surplus, China's money supply, or M2 a broad measure of cash in circulation and in deposits climbed 18.8 per cent on a year-on-year basis to 31.1 trillion yuan (US$3.9 trillion) at the end of March. Outstanding local currency loans in all financial institutions topped 20.6 trillion yuan (US$2.6 trillion) during the same period, up 14.7 per cent on a yearly basis. "The lending rate hike is aimed at maintaining the sound momentum of the continuous, co-ordinated and healthy economic growth," the central bank said in the statement posted on its website. (China Daily)

Vocabulary:

hike: an abrupt increase or rise（急劇上升、上漲、增加） effective: operative; in effect（有效的實施中；生效的） benchmark：standard（基準） deposit rate: 存款利率 outstrip: to exceed or surpass（超過、超越）