The World - News from Aug. 17, 1988

China, seeking to fight inflation, end panic buying and encourage investment, will raise interest rates that have remained at about the same level since the 1950s, the People’s Bank of China said. A bank spokesman said that beginning Sept. 1, general loan rates will go up to 9% from 7.92%. In a break with the past, when risks appear higher, the interest rates will increase, he said. Savings account interest rates will vary, he said, with rates on one-year accounts rising to 8.64% from 7.2%.