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China In I R Hiking Frenzy: 3Rd In 4 Months

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China raises interest rates for third time in four months
China raised interest rates on the last day of the Chinese New Year holiday to try to temper inflation as the country returns to work.

Pragmatic Chinese: See the problem, see that it is not going away and then quickly take action.

Muippetry: See the problem and hope it goes away. Keep looking at it closely thinking vigilance will make it go away. Keep thinking and the problem gets so big it can no longer be fixed unless it breaks.

Edited by Realistbear

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Muippetry: See the problem and hope it goes away.

You clearly haven't been paying attention. Merv stated quite plainly in his Mansion House address that he does not base policy on 'hope'.

Rather, he "looks through" the mounting storm front of accumulating data to the sunnier climes that lay beyond. And before you ask, no, this is not a matter of prediction. It can't be, simply because Merv told us in another speech that he "wasn't in the business of predictions."

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With the Shanghai Composite Index due to reopen on Wednesday after a week of rest, the Chinese central bank signalled its determination to keep inflation in check by raising the one-year lending rate to 6.06pc from 5.81pc and the deposit rate to 3pc from 2.75pc.



Daiwa Capital Markets predicted that consumer price inflation could hit 6pc in January, while other economists have said there is a risk it could rise as high as 7pc or 8pc in the first quarter.

To see Chinese inflation in perspective relative to the UK.

In 2010 Chinese CPI rose 3.3 % and UK's rose 3.7%. Apparently their target is 3.0% so they are another country currently far better at meeting their inflation target than the UK.

Lower inflation than the UK's inflation but not that far apart and UK's RPIX was about 4.7% and RPI (excluding housing) was 5.4%.

Apparently Chinese food prices rose 9.6% from a year earlier to compare with the 20%+ seen in for UK food prices in recent months.

In comparison to the Chinese the UK's inflation rate seems totally out of control.

In relative economic terms the UK's economy is pretty much long gone.

Edited by billybong

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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