China Raises Rates 25 Basis Points: Third Raise This Year.
The Chinese government seeks to curb inflation and growth softly.
China raised interest rates again in attempts to curb inflation and reduce the pace of growth. It’s the third time this year China has raised rates and the cycle of increases began last year.
China raised interest rates by 25 basis points as the Chinese economy continues to gradually slowdown. The U.S. interest rates are close to zero and 9 percent usually refers to unemployment not growth like in China, the largest economy in the world.
China’s one-year lending rate moves to 6.56 percent while China’s benchmark one-year deposit rate moves to 3.5 percent and take effect Thursday.
If China can continue to land softly, this will help them grow further without extreme boom and bust cycles caused by excessive pre & post decline measures. Global demand for goods has some economists worried that worldwide economic growth stalling but the Chinese aren’t worried about this at the moment.