PBOC faces balancing act with rate, inflation

Central bank vows to keep eye on other nations' easing policies

Amid a wave of interest rate cuts by major economies around the world, Chinese monetary authorities will face a policy dilemma in the coming weeks.

Financial specialists said authorities will have to decide between cutting the interest rate to curb capital inflows from overseas, and tightening the money supply - usually by keeping a relatively high interest rate - to ward off inflation.