WSJ: China Raises Interest Rates To Rein In Galloping Growth

Professor Andrew Bernard via Wall Street Journal about China's central bank move to increase banks' lending rates.

Inflation in China is low -- by official measures only about 1% a year. But Andrew Bernard, professor of international economics at the Tuck Business School at Dartmouth College, suggested the Chinese were acting pre-emptively to prevent an inflation problem. "They're worried about the economy a year from now having inflation and excess capacity," he said.

Source: Wall Street Journal by Andrew Browne and Michaerl M. Phillips April 28, 2006