Banking, finance, and taxes
China Delivers Yet One More Rate Hike
Published:
Last Updated:
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 again.
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
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
