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China Raises Interest Rates
Bad Credit Credit Creditres By Randy Chen
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Bad Consolidation Credit Debt (AXcess News) Hong Kong - China's Central Bank raised its 1-year lending rate by 30 basis pointsto 5.85% from 5.58% in an effort to slow the Chinese economy slightly which soared by +10.2% in Q1. The rate hike took the market by surprise since the Chinese central bank had been expected to use administrative controls to curb investment and lending in hot sectors.
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Bad Company Credit Repair While the move to raise its benchmark lending rate surprised the market, China kept its deposit rate unchanged at 2.25%.
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Bad Card Credit Credit Global economists thought that China would require banks to lock up more cash in reserve as the first step towards curbing credit growth, instead of raising its benchmark interest rate.
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Bad Car Credit Loan But the move to raise China's benchmark interest rate may have come from banks extending 1.26 trillion yuan in new loans in the first quarter -- more than half the central bank's target for the whole year.
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Bad Credit Loan Mortgage Investment growth has also increased, from 25.7% in 2005 to 27.7% in the first quarter.
Auto Bad Credit Loan The last time China's Central Bank raised its benchmark interest was in October, 2004, which did little to dampen growth.
Bad Credit Mortgage Refinance Economists attribute China's economic growth to "cheap money" as its trade surplus hit a record $102 billion last year. Foreign investment has also played a major role with $1 billion flowing into China every week.
Bad Credit Refinance The Group of Seven developed nations want China to revalue its currency, which the Chinese Central Bank has been slow to agree to, letting the Yuan rise 1.2% after its last increase in July 2005 of 2.1% when China untied its currency from the dollar, moving to a basket of international currencies instead.
Bad Credit Mortgage Second Last week, China's President Jintao Hu visited the United States, meeting with President George Bush, where Hu said the way for the U.S. to correct its trade imbalance with China was to relax trade barriers with China, especially in the technology sector rather than looking to China to revalue its currency.
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