China has raised interest rates for the second time in two months, as the government steps up its fight against inflation. A statement of the People's Bank of China said the one-year lending and deposit rates would go up by a quarter of a percentage point. Inflation is China at its highest level in more than two years and taming it is at the top of Beijing's policy agenda. Besides interest rate hikes, China had increased the bank reserve requirement ratio six times this year to 18.5 percent and 19 percent for some large commercial banks.