China's central bank decided to raise its interest rate by 25 bas points for the third time this year. The one year deposit rate reached to 3.5% from 3.25%, while the one year lending rate reached to 6.56% from 6.31%.

Inflation remains a top priority in China, and this decision comes as inflation rose by 5.5% in May, the most since July 2008. This decision triggers worried about a possible slowdown in the Chinese economy, the world's second largest.