Central bank deliberates interest rate rise

The central bank is under pressure to raise interest rates to combat price increases, but the international economic situation could influence its decision, an adviser to the bank said yesterday.

"Interest rates in China are relatively low but prices are relatively high," Fan Gang, a member of the People's Bank of China's monetary policy committee, was quoted as saying by the People's Daily.

"Some short-term deposit rates are still negative in real terms, which means there is pressure to raise interest rates," he said.