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-----Original Message-----
From: MeLinda MeLisa <[email protected]>
Sender: [email protected]
Date: Fri, 17 Dec 2010 17:02:27 
To: <[email protected]>
Reply-To: [email protected]
Subject: [StockForex] PBOC's Zhou Indicates Global Turbulence Is Delaying 
Chinese Move on Rates

PBOC's Zhou Indicates Global Turbulence Is Delaying Chinese Move on Rates


Friday, December 17, 2010


China’s central bank Governor Zhou Xiaochuan indicated that turbulence
in the global economy is limiting the nation’s ability to raise
interest rates to counter inflation, according to the China Daily
newspaper.

The government is taking a very prudent approach to increasing rates
because of an unstable and rapidly changing global situation, the
state-run paper reported today, citing Zhou. It didn’t say where or
when he made the comments.

China’s inflation climbed to a 28-month high in November and officials
pledged this month to shift to a tighter, “prudent” monetary policy
stance in 2011. The central bank raised reserve requirements for
lenders for the third time in five weeks on Dec. 10, while refraining
from adding to October’s interest-rate increase, the nation’s first
since 2007.

“The procrastination in raising interest rates will further increase
the risk of asset bubbles and worsen the inflation situation,” said
Chang Jian, a Hong Kong-based economist at Barclays Capital. “The
government is likely to raise rates in the early part of next year.”

Global risks include Europe’s debt crisis. In contrast with Standard &
Poor’s yesterday raising China’s debt rating, citing the nation’s
fiscal strength, Moody’s Investors Service has put Spain on review for
a possible downgrade.



Read more : http://marketpin.blogspot.com/


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