Chinese Central Bank Surprisingly Raised 1-Year Benchmark Interest Rate To 6.06%

POBC raised key one-year lending rate for 0.25% to 6.06%. Timing of the announcement came as a surprise to the markets, as the rise was expected further into the first quarter.

To repeat: Raising interest rates and stalling real-estate prices are a bad cocktail. I will cover China even more extensively next year, as big things could come from here.


This entry was posted on Tuesday, February 8th, 2011 at 8:39 am and is filed under China, Commodities. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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