Economics: China's rate rise

Having one of the world's largest economies implementing a monetary tightening cycle will have serio...

Having one of the world’s largest economies implementing a monetary tightening cycle will have serious consequences for global demand, Axa IM’s CIO Asia Nigel Richardson points out. With the announcement in mid-August of an interest rate rise, the People’s Bank of China (PBOC) has implemented its second 0.27 percentage point increase so far this year. The one-year deposit rate is now 2.52% while the lending rate stands at 6.12%. The PBOC had first raised lending rates by the same margin on April 27, the first rise since 2004 but kept deposit rates unchanged. The move by the PBOC follows C...