Maintaining right orbit

China has moderately tightened credit as the rest of the world is concerned about inadequate liquidity in the wake of the eruption of US subprime woes.

The central bank raised interest rates on Tuesday on top of the previous three hikes this year, pushing the benchmark deposit rate to 3.6 percent and lending rate to 7.02 percent.

The Chinese economy seems to be a different story. While many other regions are fettered by growth uncertainties, Chinese policymakers have to use various tools to keep the economy from overheating.