China's money market rates are heading higher once again, hitting their highest level on Thursday since a cash crunch in June that sent jitters through global markets.
The difference between now and six months ago is that China's central bank has indicated that it would like to see higher lending rates to help contain high credit growth, say analysts, adding that a repeat of the panic that surfaced in June when rates spiked is unlikely.
China's benchmark seven-day bond repurchase rate rose to as high as 8.5 percent, its highest level since late June. One-year interest-rate swaps, that reflect liquidity conditions, rose to a peak of about 4.99 percent, also the highest since June.
(Read more: China cash rates jump on liquidity worries)