Tuesday, February 8, 2011

People's Bank of China Raises Rate 25bps to 6.06%

The People's Bank of China raised the one-year yuan lending rate 25 basis points to 6.06% from 5.81%, and the one-year yuan deposit rate 25 basis points to 3.00% from 2.75%. The move follows a series of increases in the interest rate and required reserve ratio as the threat of surging inflation and property prices rise. China recorded inflation of 4.6% year on year in December 2010, as rising food prices caused a surge in inflation.


Post a Comment