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A flurry of rate hikes.. | Advantage China

The People's Bank of China Yongkang

Image via Wikipedia

..and inflation at 5%

while the Yuan moves up another notch

and property prices seemingly trending upward yet

Saving the yen seemed like a benevolent task but the Yen still continues to move into stronger orbits instead of weakening in the face of economic debacles and China thus had even more cause for worry. A RMB 50 billion sale  and a 60 billion Repo on the weekend fortified its rate hikes of 0.5% now the third time in 2011. According to one of the big 4’s economists, the RRR rerating will lock an additional 400 billion RMB in the system,more than $60 bln even as reserve requirements at Chinese banks ( in a tiered system as we have discussed earlier)  are now as high as 20% and 16.5%

Month-on-month price declines of new commercial homes were reported only in eight cities out of the NBS’ statistical pool of 70 major Chinese cities, prices stood unchanged in six cities, while 56 other cities posted monthly price gains.(XINHUA)

The People’s Bank of China (PBOC), or the central bank, found in its latest quarterly survey of urban bank depositors that one third of respondents anticipated home prices to remain stable despite the government’s tightening measures, 30 percent said prices would continue to rise, while one fifth expected prices to decline.(XINHUA)

China’s inflation remained a borderline 4.9% and an appetite for inflation still seemingly available with only one trade deficit reported in more than three years monthly in February. With Iron ore and Copper stock piles among others a China’s beck and call,, it is to be seen how the crisis finally impacts the middle earth behemoth with the largest global supplies of trading lucre.

 

 

Chinese Yi Yuan

Image by LostBob Photos via Flickr

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