BEIJING. Surprisingly, China increase benchmark interest rate. This is the third increase since mid-October 2010. The reason, China's inflation continues to rise to a record during the last 30 months.
Benchmark rate for one-year lending increased 25 basis points (CPM) to 6.06% from 5.81%. One-year deposit rates also increased by 25 CPM to 3% from 2.75%. Through its website, China's central bank says interest rate changes are effective from tomorrow (9 / 2).
China joined India, Indonesia, Thailand and South Korea as the country recorded raise interest rates earlier this year. The policy was taken to prevent overheating economies in Asia are leading the recovery of the global crisis.
"Global markets higher interest rate is often used as a sign that the slowing growth in China is inevitable," said Dariusz Kowalczyk, Economist, Credit Agricole CIB in Hong Kong, today (8 / 2).
In trading in the spot market today (20:30), the yuan rose 0.1% to 6.5555 per U.S. dollar.
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