Sunday, Jul 08, 2007
Chinese Yuan to strengthen by 10% over the next 12 months
Bloomberg: Yuan Strength Fails to Quiet Sanction
As a major importer of Chinese goods, this will affect UK import prices in a big way. If UK rate rises peak or/and Sterling falls it would have an even bigger effect. Short/Medium/Long inflation is here to stay in the UK, and this is yet more evidence why rates will continue to rise through 2008 and maybe beyond.
Posted by c'mon correction @ 09:23 PM (152 views) Add Comment
2 Comments
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1. planning4acrash said...
Good god, a 10% rise in the cost of importing Chinese goods! This article does however focus on the US, I doubt that the Yuan will appreciate quite so much against Sterling. Tho, with inflation so close to 3%, we will not need such a rise to bring the UK out of balance.
2. Stoatgobbler said...
Quite. This is the piece of the puzzle, as I have banged on about before, that looks the most dangerous to me. USD sliding, Chinese holding billions of dollars in treasuries - very smelly indeed.