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China's central bank rose benchmark lending and deposit rates by 27 basis points, effective tomorrow. The move was the third this year along with five increases in the bank reserve requirement.
The central bank said the latest action was aimed at maintaining price stability and guiding inflation expectations.
The increase in the interest rates as of today in China central bank is very useful as expected to step to a more aggressive strictness that was required, as told by Ben Simpfendorfer, he is a strategist in the Royal Bank in Scotland in Hongkong.
He stated that, “There will be no surprise here.” “This is very useful as a step forward although the authorities need to be a little bit strict in a very aggressive manner preventing the overheating growth.”
Adding to that the liquidity will now worsen in the second half and he expected that the series of increases in the requirements in the bank reserves.
23:07
Posted on Jul-19-2007
