China''s will decide whether to raise interest rates based on the economic conditions in the second half of the year, the Beijing News reported citing Han Yongwen, spokesman of National Development and Reform Commission (NDRC).

Han said in a press conference that the government will issue more macro-economic control policies to curb overheating sectors, however, an interest rate hike will depend on the economic situation in the second half.

According to NDRC, China''s economy grew 10.9 percent in the first half of this year.

"The government expects a slower growth rate in the second half," Han was quoted as saying.

The government has steadily tightened Chinese credit and investment conditions, and it announced a hike in the commercial bank reserve requirement last Friday to further reduce liquidity. -AFX