Plenty of reasons to hike Chinese rates but one big reason not to: hot money in-flows.
[A]ny rate hike will prompt further speculative capital inflows, which the government does not want.
Analysts said China’s move Friday to again hike banks’ reserve requirement ratio rather than hike rates reflects authorities’ caution.
Although the central bank felt the need to do something to show its determination to tame inflation, it had no intention of killing growth with an aggressive rate hike or imposing a lending squeeze…
That from the China Daily via state news agency Xinhua.
