China raises interest rates
Posted by admin . Published on 15 February 2010, Received
The Chinese government does not want to take any chances regarding the asset bubble burst, and hence it has decided to hike up the bank reserve ratio by a massive 50 basis points last week. The spike up is expected to raise the bank interest rates immediately. That in turn could push out many customers from investing further in real estate and other assets.
So expect the Chinese growth story to cool down in the coming months due to reducing demand for goods and services. This many not augur well for the rest of the world also, because China is now the top range trading partner for most of the global players.
