Forward news ... -Sent from my BlackBerry® phone- Ronald e-Mail -----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Wed, 9 Feb 2011 01:20:39 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] China Hikes Shouldn't Slow Global Growth China Hikes Shouldn't Slow Global Growth China has raised benchmark interest rates for the third time since October. Unsurprisingly, rising inflationary pressures is the primary motivation behind China's rate hike. We have been looking for another rate hike from China since they tightened in December and with prices rising due to geopolitical risks, the Lunar New Year and a recent drought in the grain producing Northeast part of the country, China did not want to take any risks, opting to preempt a further increase in inflationary pressures by raising interest rates. Given the health of the Chinese economy and the prospect of stronger global growth, we have not seen the last of China's policy actions. Capital Economics analysts note that they think markets are right to have taken China's latest decision to raise interest rates in stride. The announcement has caused some jitters about the impact tightening will have on growth but these concerns should not be overplayed as the rate hikes should not do much to slow growth, they say. Aggressive monetary tightening should not be needed in China, they say. From Newswires http://marketpin.blogspot.com/ February 08, 2011 11:29 ET (16:29 GMT)
