China continues its schizophrenic monetary policy, while continuing to print money to prop up the dollar on currency exchange, they simultaneously raise interest rates in an attempt to slow money growth.
China's central bank, the People's Bank of China, today announced an increase in its interest rates by 25 basis points. The central bank said in a statement it will raise the one-year yuan lending rate to 6.31% from 6.06%, and the one-year yuan deposit rate to 3.25% from 3%.
This is the fourth rate hike since last October. At some point the rate hikes will slow the economy and result in stagflation.
Wonder what the chances are of that ever happening in the United States!
ReplyDeleteIt is a fiat world Bob, what else do you expect?
ReplyDelete