Import Export and Inflation rise in China
China's consumer price inflation rose a faster-than-expected 2.7% in February, the sharpest increase since October 2008. Coming on the heels of Tuesday's strong import/export data and amid a surge in real estate speculation, China's central bank may take more action to quell growth in the world's most populous nation.
The People's Bank of China (PBOC) has raised bank reserve requirements in recent months, but may now feel compelled to hike its lending rate, something it hasn't done since 2007. In addition to the data above, the PBOC must be concerned that the nation's banks made 1.39 trillion yuan in new loans in January, or 18.5% of the government's full-year target, according to Xinhau.
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