China to raise a key interest rate

BEIJING, April 27 (UPI) -- China is raising a key bank-lending rate for the first time since 2004 in an unexpected move to cool off its economy.

Beginning Friday, the central bank's benchmark one-year lending rate rises to 5.85 percent from 5.58 percent, the Wall Street Journal reported.

News of the imminent rate-hike cut the share price of European mining and energy stocks as investors mulled the possibility that China's sizzling growth -- and thus demand for metals and oil -- would slow.

Beijing aims to dial back an economy that is growing at an annualized rate of more than 10 percent.

Economists responded to the news by suggesting that China may follow the relatively modest interest rate hike with a move to raise the value of its yuan.