Is China's growth slowing or accelerating?

IS CHINA'S growth slowing or accelerating? In the year to the third quarter, its economy expanded by 9.6%, slower than its growth in previous quarters. So why did China's central bank raise reserve requirements for six banks earlier this month and raise interest rates (by 0.25%) earlier this week for the first time in almost three years? It may be worried that beneath the headline numbers, China's economy is once again gaining momentum. Bank lending is ahead of target and although year-on-year GDP growth is slowing, quarter-on-quarter growth was probably faster in July to September, than it was in the previous three months. That would add to the upward pressure on prices, which rose by 3.6% in the year to September. In China, unlike most emerging economies, the authorities get antsy whenever inflation creeps close to 4%.