BEIJING—China’s central bank followed a U.S. interest-rate increase with one of its own to blunt the effect of the Federal Reserve move on the Chinese economy, which cooled further in November.

The People’s Bank of China on Thursday raised two key short-term interest rates, hours after the U.S. Fed’s third interest-rate increase this year. Economists say they expect the world’s second-largest economy to feel more pains of soaring funding costs in 2018. Fed officials have penciled in three quarter-point rate increases for the...