For the second time this year and the fourth time since 2010, the Chinese government raised interest rates by 25bp, bringing its lending and deposit rates to 6.31 and 3.25 percent. Like many other countries around the world, China is worried about rising inflation pressures and the negative impact that it could have on [...]
Entries Categorized as 'china'
April 5, 2011
March 18, 2011
China raised their reserve requirement ratio today for the third time this year and the ninth time since the beginning of 2010. I don’t have time to write much about this but I want to point out that Chinese is having a diminishing impact on the market.
This is what I wrote last month:
February 14, 2011
News that China surpassed Japan as the world’s second largest economy is one of the biggest stories in the financial markets. For more than 4 decades, the only country with a larger economic output than Japan was the U.S. However over the past 20 years, the Japanese economy stagnated, giving China the opportunity to [...]
February 8, 2011
With each Chinese rate hike, there has been a smaller and smaller impact on the currency market. The first rate hike back in October elicited the biggest reaction because it was the first rate hike in nearly 3 years. At the time, all of the pro-cyclical currencies plunged against the U.S. dollar with [...]
January 10, 2011
Chinese President Hu will be visiting President Obama next week. Here’s what I think they will say to each other
Whether the timing of the trade surprise was intentional or not, President Hu will be arriving in Washington on January 19th for his official state visit. There is usually no mystery to these significant data surprises. [...]