Tue, Mar 20, 2007 - Page 11 News List

China's rate hike hints at urgency, analysts say

OVERHEATING A rise of 18.5 percent in industrial output and news that the key inflation measure had risen to 2.7 percent indicated the economy was picking up more speed

AFP , SHANGHAI

Currently low interest rates only add to the already ample liquidity as exports pump up investment even more, fuelling the kind of bull run that has put Chinese share prices up 150 percent since January last year.

"We believe that to dampen the rapid increase of stock market prices may have featured largely in the bank's rate decision this time," Wang said.

This story has been viewed 1779 times.
TOP top