China Rate Increase a Responsible Move to Tame Inflation

China yesterday (Tuesday) accelerated its campaign against surging inflation by raising interest rates for the third time since mid-October in advance of reports expected to suggest prices are racing ahead at the fastest pace the nation has seen in 30 months. The benchmark one-year lending rate today will increase to 6.06% from 5.81%, the People's Bank of China (PBOC) said on its Website. The one-year deposit rate will rise to 3% from 2.75%. The move was hardly cheered by investors, but most analysts believe it was the appropriate action to take considering the country's torrid inflation .