Asia

China raises short-term interest rate follow US increase

Chinese Premier Li Keqiang listens to a reporter's question during a press conference held at the conclusion of the annual meeting of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Wednesday, March 15, 2017.  China's No. 2 leader said Wednesday his government hopes for positive relations with Washington and has no desire for a trade war nor plans to devalue its currency to boost exports.(AP Photo/Mark Schiefelbein)

Chinese Premier Li Keqiang listens to a reporter's question during a press conference held at the conclusion of the annual meeting of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Wednesday, March 15, 2017. China's No. 2 leader said Wednesday his government hopes for positive relations with Washington and has no desire for a trade war nor plans to devalue its currency to boost exports.(AP Photo/Mark Schiefelbein)  (The Associated Press)

China's central bank has raised the interest rate on short-term lending to banks but left its benchmark rate unchanged following the U.S. increase.

The People's Bank of China on Thursday increased the rate for its six-month and one-year medium-term lending facility and open-market repurchase operations by 0.1 percent. The benchmark one-year commercial lending rate was unchanged.

The bank cited the U.S. Federal Reserve's Wednesday rate hike and improved Chinese economic conditions.