Global Rising Rates Repercussions (1)

China's central bank raised lending rates.

This was obviously to rein in the world's fastest-growing economy.

The action may not be so important if the US did not also do the same.

The Chinese action aims to slow a spectacular surge in investment and it may potentially brake China's voracious appetite on world markets for oil and other commodities.

With interest rates already climbing in the United States and the EU, and with monetary officials starting to tighten policy in Japan, China seems to be joining the world's central bankers in trying to gain control of speculation that has driven up prices of assets like gold and real estate.

From steel mills and auto factories to luxury apartment buildings and plush office complexes, China has been engaged in a nationwide building boom fueled by easy loans from banks and other financial institutions.