PBOC increases deposit rates

The People's Bank of China announced Monday it was lifting domestic US and Hong Kong dollar deposit rates by 0.375 percentage point, the second increase since the revaluation of the yuan on July 21. The benchmark one-year deposit rate for US dollars goes up to 2%, while the rate for Hong Kong dollars rises to 1.9%, the central bank said in a statement posted on its website. Market observers said the move was part of ongoing exchange regime reforms and aimed at deterring further speculation on the yuan.