China Delivers Yet One More Rate Hike

Banking, finance, and taxes

Published: July 6, 2011 6:45 am

Last Updated: July 6, 2011 6:47 am

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

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.