China Jacks Up Interest Rates

China pumped up its interest rates for the third time in four months today, in a desperate attempt to rein in inflation. One-year deposit rates rose to 3%, and the one-year lending rate to 6.06%, the New York Times reports, and analysts expect still more increases down the road.

While the rest of the world is keeping rates low in hopes of spurring lending and growth, China’s got all the growth it can handle, thanks to massive state investment projects. The country’s economy grew 10.3% last year, well above analyst expectations, and brought with it an uncomfortable 3.3% inflation rate. (More China stories.)