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Thread: Why not increase the interest rates?
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[quote=GUEST4772,280715]Inflation has become a great concern for Chinese authorities. As the news reports, CPI had increased by 8.5 percent in Feb.. According to some analysts, the CPI in March might also be above 8 percent. If the CPI of March is higher than Feb, some people estimate that the Chinese government will adopt some measures. But what measures will they take, to increase the rates? As the analysts estimate, the goverment might not increase the rates. Moreover, the government won't adjust the RMB exchange rates against other currencies. This means, China won't accelerate RMB appreciation despite of other requirements for appreciating RMB faster. In your opinion, will China increase the interest rates? If it doesn't increase the interest rates, what will they do?[/quote]
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