China inflation rate reached 11-year high

China inflation rate reached 11-year high
Dec 12, 2007 01:17
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	It is reported that China inflation rate in November reached 6.9%, which is the highest in recent 11 years. The inflation rate in October was 6.5%, influenced by food prices. Last week, China declared that it would readjust its monetary policy from 'prudent' to 'tight' fearing possible inflation and economy overheating. This week, the central bank of China raised the reserve ratio requirement to 14.5% at the tenth time. So far, China has raised the interest rates five times, reserve ratio ten times to slow down its economy growth and to curb the inflation. However, all these measures seemed to take no effect. Some analysts said that the so high inflation rate may harden the policy makers' resolve to tighten its monetary policy and bank lendings. Perhaps, the energy price reform will be delayed for this reason. Not long ago, the state said that it might raise the prices of electricity and tapping water. Confronted with so high inflation rate, the policy makers need to reconsider it carefully.

Dec 12, 2007 01:17

JIMMYB
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Join Date: Feb 7, 2007
Status: offline

It is reported that China inflation rate in November reached 6.9%, which is the highest in recent 11 years. The inflation rate in October was 6.5%, influenced by food prices. Last week, China declared that it would readjust its monetary policy from 'prudent' to 'tight' fearing possible inflation and economy overheating. This week, the central bank of China raised the reserve ratio requirement to 14.5% at the tenth time. So far, China has raised the interest rates five times, reserve ratio ten times to slow down its economy growth and to curb the inflation. However, all these measures seemed to take no effect.

Some analysts said that the so high inflation rate may harden the policy makers' resolve to tighten its monetary policy and bank lendings. Perhaps, the energy price reform will be delayed for this reason. Not long ago, the state said that it might raise the prices of electricity and tapping water. Confronted with so high inflation rate, the policy makers need to reconsider it carefully.

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