Tuesday, July 28, 2009

PBOC quietly letting interest rates rise

The People's Bank of China (China's central bank) has been slowing the rate of growth in reserves and this has been putting modest upward pressure on market interest rates. They might be doing this because of sensitivity to comments that they are creating another "bubble," which is not true, however, it just goes to show that China's policy makers are no less influenced by the "ignorati" as those here in the U.S.

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