Tuesday, February 8, 2011

China Raises Interest Rates to Quell Inflation

Today Beijing raised the interest rate for the third time since October to try to help inflation worries. They raised the one year deposit rate up to 3 percent and its one year lending rate to 6.06 percent, both by rising by a quarter of a percentage point.
Growth rate last year was at 10.3 percent, up from 9.2% in 2009 but inflation is 4.6%.
Inflows of cash from overseas and easy credit have caused the rates to rise all year.

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