SAVE MONEY ON TRAVEL DEALS

The bank changed the rates for the first time in six years and within hours of learning New York investment bank Lehman Brothers Holdings announced it would file for bankruptcy and Merrill Lynch & Co. had agreed to sell itself to Bank of America Corp., The New York Times reported Monday.

"I think the most important thing China should do is to immediately give up on the tight monetary policy", Zhao Xiao, an economist at the University of Science and Technology of Beijing told the Times.

The bank's announcement came Monday while China's financial markets were closed for a holiday.

The change applies to the bank's one-year lending rate. Deposit rates were left unchanged at 4.14 percent.

The bank's statement explaining the move didn't mention inflation, which has settled to an annual rate of 4.9 percent. Instead, it mentioned the need to "maintain the steady and fast growth of the national economy."

 BREAKING STORIES

China to reduce income tax

China to build pipeline through Myanmar

Regulator:Chinese banks face lower profits

China to issue bond for stimulus plan

Crude oil prices down on China report

China inflation dips to 4 percent

China says jumbo jets

China central bank cuts lending rate

CNPC to develop Uzbekistan oilfield

China raises grain purchase price

China's ICBC opens unit in Dubai

China to invest heavily in Pakistan

China central bank cuts interest rate

Appliance tycoon named China's wealthiest

IBM, Volvo allow Chinese labor unions

GE to add 5 more regional centers in China

China's central bank cuts key lending rate

China to become top Asia consumer market

Execs: Guzzler tax won't hurt China sales

China ICBC bank's foreign assets soar