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PR Newswire
25-12-2010, 08:06 PM
Business News
China's central bank hikes interest rates
BEIJING - China's central bank on Saturday raised interest rates by 25 basis points for the second time in three months as authorities ramp up efforts to curb borrowing and tame inflation.
The People's Bank of China said in a brief one-line statement that it will raise the one-year lending and deposit rates by 25 basis points each. The move takes the rates to 5.81 percent and 2.75 percent respectively.
In October, policymakers raised rates for the first time in nearly three years as they resort to stronger measures to try to slow a flood of liquidity which has been fanning inflation and driving up property prices.
Ever fearful of inflation's potential to spark unrest, authorities have been pulling on a number of policy levers to rein in consumer prices and cool the red-hot real estate market.
Earlier this month, the central bank ordered lenders for the sixth time this year to keep more money in reserve, effectively limiting the amount of money they can lend.
Despite these measures, bank lending has remained stubbornly high and property prices have continued to rise.
The consumer price index, a key measure of inflation, topped five percent in November for the first time in more than two years as food costs soared nearly 12 percent on year, official data shows.
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seems like they are fearful that the inflation may get out of control...12% yoy on food is quite scarely...i wonder how the ordinary chinese can survived there..given their measely pay on avg.
China's central bank hikes interest rates
BEIJING - China's central bank on Saturday raised interest rates by 25 basis points for the second time in three months as authorities ramp up efforts to curb borrowing and tame inflation.
The People's Bank of China said in a brief one-line statement that it will raise the one-year lending and deposit rates by 25 basis points each. The move takes the rates to 5.81 percent and 2.75 percent respectively.
In October, policymakers raised rates for the first time in nearly three years as they resort to stronger measures to try to slow a flood of liquidity which has been fanning inflation and driving up property prices.
Ever fearful of inflation's potential to spark unrest, authorities have been pulling on a number of policy levers to rein in consumer prices and cool the red-hot real estate market.
Earlier this month, the central bank ordered lenders for the sixth time this year to keep more money in reserve, effectively limiting the amount of money they can lend.
Despite these measures, bank lending has remained stubbornly high and property prices have continued to rise.
The consumer price index, a key measure of inflation, topped five percent in November for the first time in more than two years as food costs soared nearly 12 percent on year, official data shows.
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seems like they are fearful that the inflation may get out of control...12% yoy on food is quite scarely...i wonder how the ordinary chinese can survived there..given their measely pay on avg.
