Updated Trends: China Surprises World With The First Increase In Bank Interest Rates
The Central Bank Of China has shocked the whole world by increasing the the interest rates of banks for the first time in three years. This move by China indicates the soaring of domestic prices of assets and strong inflation. As per reports, China on an average, has increased the interest rates by at least 25 base points.
Oil stocks fell in the country, as compared to Europe, and the dollar made a positive gain in the market once again. Chief economists of the country stated that the rise in the interest rates is something that is outside the scope of the nation’s market.
It is stated by officials, that the main cause of the rise of interest rates is the ongoing inflation, which has made the bank rates go below the limit bar. Inflation in China was around 3.5% in August and suddenly gained pace to be at 3.6% in the month of September.