Move on rates aims at fending off risks

The central bank's move to raise short-term interest rates on Thursday reflects Beijing's intention to fend off financial risks, a method that might be used more in the future rather than increasing benchmark interest rates, according to economists.

The People's Bank of China raised its rates in the open market and to its medium-term lending facilities by 10 basis points, hours after the US Federal Reserve raised its benchmark interest rate by 25 basis points.

The central bank said the move cannot be equated with interest rate hikes, and it cannot be interpreted as a shift away from prudent monetary policy, according to an online statement on Thursday.