LONDON (Commodity Online) : Copper futures touched an all-time high, riding the wave of China’s decision not to increase the borrowing costs as well as increased demand from there boosting outlook.

The measure not to allow for increase in bank rates is despite the inflation surge in China where consumer prices jumped 5.1% in November, reported Bloomberg.

But the experts expect the rally to slow down after charting an uptrend through the early part of 2011, since change in China’s policies aimed at slowing down the economy are expected to gain momentum by then.

Interest rates can make or mar the copper rally, experts contend.

In the London Metal Exchange, three-month copper gained 1.5% to touch $9,120 a metric ton and got traded at $ 9,108 at 12.22 p.m. in Singapore breaching the previous high of $9,091 a ton—a 31 month high set on December 9 Futures in New York.

On the Shanghai Futures Exchange the metal for March delivery touched one month high of $10,331 a ton, a rise of 1.5% while Comex Futures for copper jumped 1.6% to $4.1795 a pound, a bit short of $4.2605 heights it achieved in May 2008.

In the first annual drop since 2004, LME copper stock have shrunk 31% this year depleting to 348,625 tons on December 10 which is the lowest level registered since October 2009.

In the last month, copper imports to China touched 351,597 tons, a 29% enhancement when compared with October and 21% higher y-o-y, said data from Bloomberg.