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China Raises Interest Rates to Cool Investment, Economic Growth

China's central bank says it is raising key interest rates by more than a quarter of a percentage point, in its latest effort to cool the nation's rapid economic growth.

The People's Bank of China said in a statement Saturday that the .27 percent increase for one year deposit and lending benchmark rates will go into effect Sunday. The statement said the new rates will help promote "good, fast development" of the national economy.

China has raised interest rates three times since April of last year. This increase will raise the interest rate on one-year loans to 6.39 percent, and one-year deposit rates to 2.79 percent.

Chinese officials have been trying to cool a boom in construction and investment, and to encourage banks to hold lending and build up reserves.

Four years of double-digit economic growth, largely from exports and investment, have left China's financial system flush with cash.

Last year, China's economy grew at the breakneck pace of nearly 11 percent.

Some information for this report was provided by AFP and AP.