China may hike interest rates next month: report (by Chris Oliver)

HONG KONG (MarketWatch) -- China could lift interest rates around the Lunar New Year holiday, which gets underway next month, if the inflation outlook indicates an acceleration in consumer prices, according to a front page editorial Friday in the state-run China Securities Journal. The consumer price index could exceed 6% in the first half, the paper said. Authorities will also allow the yuan to appreciate and unveil futher increasess to bank's reserve ratio requirements, as part of anti-inflation efforts, the report said. Many government office and private business will close for a week-long holiday during the Lunar New Year, which gets underway on Feb. 2. HONG KONG (MarketWatch) -- China could lift interest rates around the Lunar New Year holiday, which gets underway next month, if the inflation outlook indicates acceleration in consumer prices, according to a front page editorial Friday in the state-run China Securities Journal. The consumer price index could exceed 6% in the first half, the paper said. It also noted that authorities will allow the yuan to appreciate to help tamp down price gains in imported products, and also further lift the reserve ratio requirement for banks. Many government office and private business will close for a week-long holiday during the Lunar New Year, which gets underway on Feb. 2.