Central bank chief promises to curb rising inflation

Another interest rate hike appears to be in the cards after central bank governor Zhou Xiaochuan pledged to take action against rising inflation and curb excess liquidity, the South China Morning Post reported. In an interview with the People's Bank of China's own newspaper, Zhou also said he wanted to end negative real interest rates, where the inflation rate exceeds the return offered on a standard bank deposit. This situation has been blamed for rising stock and property prices as people turn their backs on the banks and search for more lucrative investments. It was announced earlier this week that inflation hit a 10-year high of 6.5% in October, driven upwards by rising food and fuel prices. Retail sales jumped 18.1% in the same month, the fastest rate of growth since the government started releasing data in 1999.