The Chinese government may raise interest rates this weekend to begin its move toward a "prudent" monetary policy in the face of inflationary pressure, Reuters reported, citing state media. The cover story of the China Securities Journal, which has a strong track record of predicting policy moves, said this weekend would be a "sensitive window" for a rate rise, which would be the second increase since the central bank began to tighten monetary policy to slow lending and inflation. The November consumer price index is due to be released on December 13. Some analysts believe consumer price inflation may have risen to 4.7% last month, a 27-month high, up from 4.4% in October, and many believe even those figures are artificially low.
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