China's central bank said Tuesday it will raise its benchmark one-year lending and deposit rate by 0.25 percentage points effective from Oct. 20.

The People's Bank of China (PBOC) said in a statement on its website that the one-year deposit rate will rise from 2.25 percent to 2.50 percent and the one-year lending rate will increase from 5.31 percent to 5.56 percent.