China may raise rates soon, revalue yuan by Oct

1%, 2%, 5% are all insignificant percentages in terms of rebalancing the global economy. The Yuan is still pegged to a basket of fiat currency which on balance is devaluing against gold. While western interests cheer devaluation as a solution, their voice is becoming difficult to hear over the sound of the stampede of global investors running from fiat to gold.

China might revalue the yuan again, as it did by 2.1 percent against the dollar in July 2005; and China might also widen the yuan's daily trading band against the dollar, they said.

Source: finance.yahoo.com