China’s government is expected on Wednesday to raise interest rates by 25 basis points, according to a government-sponsored news release, in a sign of continued pressure on the economy to boost growth.

The central bank, the People’s Bank of China, said Wednesday that the central bank would keep its benchmark interest rate at 6.50 per cent from 7 per cent and will “exercise the option” to raise it by the same amount on June 3.

The central bank said it would not use the option, as it did in April, to raise the benchmark rate.

In an effort to push down the value of the yuan, China has imposed massive tariffs on imports from South Korea and the United States.

The currency is currently trading at a record low of 0.853 to the dollar, down from a record high of 2.4 per cent last year.

The yuan is also experiencing a decline in the value and quality of Chinese goods, as Beijing tries to push more exports overseas.

“In order to reduce the yuan’s value, the central government has made the decision to take measures that will boost the economy, such as tightening the yuan exchange rate,” the Peoples Bank said in a statement.

It said the central is “prepared to maintain its policy stance” in this case.

It also said the government will “support the exchange rate of the renminbi, maintaining the current level of the exchange ratio of the two currencies.”

In addition, the Central Bank of the People for the Advancement of Thought and Virtue, a committee of experts, is to “review the policy stance of the central banks of the United Kingdom and Germany,” and “study the situation in China,” the statement said.