According to the WSJ Chinese policy seriously consider another rate hike before the end of this month. This is not the biggest surprise - the NSC has twice raised rates in October and raised the reserve requirements in response to rising inflation. Officially, consumer prices rose last year by 4,6%, but many believe that these data are significantly undervalued and does not include the purchase of new goods. As elsewhere, inflation is likely to accelerate in the coming months. Real interest rates remain very low in China, and even if inflation was measured correctly, they remain negative. Apart from the accelerated growth in commodity prices raises concerns and rising wages. At some point, it is very possible that China will consider a more powerful action with regard to rates, such as increased immediately by 50 basis points, instead of warning increase by 25 bps
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