Will the People's Bank of China raise interest rates soon?The PBOC was/is expected to continue raising interest rates to sop up liquidity in China's overheated economy. But with the FED cutting US interest rates, and potential cooling in China, has the impetus for increasing interest rates in China gone away? Can we expect rates to increase again this month or next? |
As far as I'm concerned,it looks like impossible in a short term. China's CPI(Consumer Price Index) has increased 7.1% in Jan. and climbed to the peak since 1997.One of the most important reasons is the heavy snow in the south of China from Jan to Feb.In that case,the raise of CPI is still supposed to be"resonable" especially for the food.At the moment,raising interest rates is not expected to be the best method for national's economy and the PBOC would rather choose the mild method to issue banks bills at home to drain the extra cash.
The rates mignt increase
