Leading economic indices from the Conference Board (CB) and the OECD point towards an acceleration of the pace of growth in China in the coming months. From May to November, the CB index, released January 13, increased by 4.7 % compared to 3.3 % in the six preceding months. The OECD index is on a growth path from September to November, after having let believe previously to a downturn.
Taking into account the important raise in consumer prices in China and a better outlook for the world economy, the People's Bank of China changed the orientation of its monetary policy last autumn : it went from "moderately loose" to "prudent". So interest rates increased twice by a quarter of a point on October 19 and December 25. The central bank raised also many times the bank reserves in a way to slow down the supply of credit, the most recent increase happening yesterday, January 14. Will it be sufficient? Many analysts think that interest rates could go up at least twice again by the end of this year.
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