China raises interest rates

I guess you could see this coming. Yesterday from Bloomberg:

China raised interest rates for the third time in 11 months to curb inflation and reduce asset bubbles in the world's fastest-growing major economy.

The one-year benchmark lending rate will be raised to 6.39 percent -- its highest in almost eight years -- from 6.12 percent, starting tomorrow, the Beijing-based People's Bank of China said today on its Web site. The one-year deposit rate will be increased to 2.79 percent from 2.52 percent. A central bank spokesman confirmed the increases.

Let's see whether the currency is allowed to appreciate more following this though.

The currency rose to 7.7360 against the dollar in Shanghai in the week ended March 16 from 7.7445 on March 9, according to the China Foreign Exchange Trade System. It has risen 6.7 percent from the fixed rate of 8.30 to the dollar that was scrapped on July 21, 2005.