China Delivers Yet One More Rate Hike
You have been reading all year that China has been hitting the brakes to curb inflation and to fight an overheating economy. They are at it again. Now the People’s Bank of China has raised its benchmark interest rates yet…
The PBOC raised its deposit and lending rate by 0.25% today, effective July 7, 2011. This marks the third hike of 2011 and the fifth hike in this cycle, with the new lending rate at 6.56% and the Yuan deposit rate going to 3.50%.
Local newspapers and news outlets in China of late have seemed to set the tone that this was coming. The wording has also been thrown out over and over about China seeking to maintain a stable Yuan at a “reasonable and balanced level” on the PBOC website.
If China is still tightening, you might as well go ahead and expect that India will be shortly behind it.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
