China may raise banks' reserve requirement ratio at the start of next year to curb capital inflow and control lending rates, central bank adviser Li Daokui has said.

Interest rates will be raised gradually in 2011 and policy makers will also study global economic conditions, Li said on Friday.

His comments came after the Chinese Communist Party Central Committee's Political Bureau said it would shift from a relatively loose to a prudent monetary policy to fight inflation and curb excessive liquidity.

The People's Bank of China raised lending and deposit rates by 25 basis points in October, the first time since 2007. It also raised banks' reserve ratio twice in November to a record level of 18.5 percent to tackle inflation.

"The prudent monetary policy will help ensure a more healthy and consistent economic growth in China as inflation remains high and liquidity is more than abundant," said Xia Bin, director of the Finance Institute under the State Council's Development Research Center.

"The 'prudent monetary policy' suggested growth of money supply will slow in 2011 and an interest rate hike is possible in the near future," the Securities Daily said over the weekend, citing Wang Jian, secretary general of macroeconomic studies at the National Development and Reform Commission.

Li also urged that more of China's large amount of savings be introduced into the capital market to avoid systematic financial risks and to foster the capital market.

"Right now, we shall address the problem by shifting from the loose monetary policy, slowing the growth rate of money supply and expanding investment channels," Li told People's Daily.