Beijing set to await inflation data before tightening credit The United States' decision to increase interest rates would have little impact on the timing of a rate rise on the mainland, economists and bank executives said yesterday. They said the state of the mainland's economy would have a much greater influence on the mainland's interest rate policy than any actions by the US Federal Reserve, which raised interest rates by 0.25 per cent on Wednesday. 'I don't think China will follow the US Fed's move to raise interest rates,' said Zhu Xinqiang , executive assistant president at the Bank of China. He said regulators on the mainland were concerned with a number of domestic issues, including the pressure on the yuan and the potential for overheating, which outweighed policy actions in the US. In addition, in recent months senior officials have repeated their wish to wait for additional data - particularly in June - to see if macroeconomic policies to restrain growth are working. The most important data for determining the direction of interest-rate policy was the inflation rate, said Ping Yee Low, China economist with the United Overseas Bank in Singapore. Top mainland regulators have said they are likely to raise rates if inflation tops 5 per cent. Inflation reached 4.2 per cent in May. Another important factor is how fast money supply, loans and investment in fixed assets are rising. But although domestic policy is the key to determining mainland interest rates, the Fed's increase removed one hurdle that could have delayed any action officials were planning to take, Ms Low said. An interest rate increase by the mainland ahead of the US could have encouraged more 'hot money' to enter the country, adding to the excess money supply that could stimulate inflation. The US rate increase 'removes a minor irritant,' said Ben Simpfendorfer, China economist at JPMorgan Chase.