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Thread: Why not increase the interest rates?
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[quote=JIMMYB,280941]With the interest rates increasing, people would like to save their money at banks instead of consuming. In this way, the import will be reduced. But trade surplus will increase. I guess this will make EU and US very angry since they have complained this for very long. In recent months, US Fed has cut the interst rates several times. If China keeps to raise the interest rates, US trade deficit will be increasing. This is what US doesn't expect. Forced by this, China has little space to raise the interest rates.[/quote]
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