With Rate Hikes, Policymakers Stay the Course

Another round of speculation, followed by another hike for China's benchmark interest rates.

Chinese monetary policy continued following that predictable course in early July as the central bank raised the nation's deposit and lending rates 25 basis points, effective July 7. It was the fifth such move since October and the third this year.

Higher consumer prices and rising inflation pressure fed the customary, pre-hike speculation among investors and analysts before policymakers proved them right.