China will raise the one-year deposit and loan interest rates by 0.27 and 0.18 percentage points, respectively, to 3.06 percent and 6.57 percent as of May 19, the People's Bank of China announced on Friday.

The central bank will also raise banks' reserve requirement ratio by 0.5 percentage points to 11.5 percent as of June 5.

This is the first time in 10 years that the central bank simultaneously raised the benchmark interest rates and the bank reserve ratio.

The move aims to "strengthen liquidity management in the banking system, rationalize the growth of lending and investment and maintain price stability", the central bank said in a statement on its website.

China has raised interest rates five times since 2004 and bank reserve ratio eight times since 2006.