China's central bank may raise interest rates this weekend to enshrine its shift to a "prudent" monetary policy in the face of rising inflation, Reuters reported on Dec 7, citing the China Securities Journal.
3 n% o6 Q9 } l The paper said that this weekend offered a "sensitive window" for a rate rise, which would be the country's second in its current tightening cycle.
2 z" H2 B" \- M1 H0 b The newspaper said the timing was right for such a move with official monthly economic indicators, notably the consumer price index (CPI), likely to show an increase in inflationary pressure when released on Monday, Dec 13.4 n* _9 f9 W) c/ `; Y
"With reference to the central bank's record of raising interest rates just ahead of the release of CPI, this weekend will provide a window for a possible policy change," the newspaper said, without citing any source." n3 D/ t3 r Z* e- }
China's CPI in November may have risen to a 27-month high of 4.7 percent from a year ago, according to a Reuters poll, up from a 4.4 percent pace in October.( i. O8 @# F# O, z
The newspaper added that the expected interest rate increase would form part of China's new monetary policy stance.( b7 d+ Q: U8 S' O3 D; l' q& c
The country's top leadership said last week that Beijing was switching to a "prudent" monetary policy instead of its earlier "moderately loose" stance, paving the way for future monetary policy tightening. |