|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    25th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News

China raises interest rates to control stubbornly high inflation

Bookmark and Share

by Kay Mitchell

The People’s Bank of China has again raised interest rates in a bid to curb high inflation.

The central bank first lifted rates last October – the first such move since 2007.

Today’s rise represents the third in four months and the Bank has increased the one-year yuan lending rate from 5.81% to 6.06%, and the one-year yuan deposit rate to 3.0% from 2.75%.

The Chinese economy, which is now the world’s second largest, has experienced strong economic growth but stubbornly high inflation continues to weigh on the economy.

Inflation fears are always a concern to Chinese officials due to the potential for price rises to trigger civil unrest.

Inflation eased to 4.6% in December, from November’s 28-month high of 5.1%.

However, despite the fall, analysts are still concerned for high inflation and said the Government needs to take more action. The inflation figure for December was higher than expected.

There are fears that inflation will increase to around 5.3% in January as food prices continue to soar.

Discuss this in the Finance Markets forums

Story link: China raises interest rates to control stubbornly high inflation

News posted: February 8, 2011

Financial Services:

Related financial stories to: China raises interest rates to control stubbornly high inflation:
Previous: «
Next: »

Visited 3084 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , ,