Business & Finance
Key China money rate tumbles after interest rate rise
SHANGHAI : China 's benchmark money market rate slumped 266 basis points in early trade on Thursday after the People's
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Traders said the move might temporarily delay an official increase in bank required reserve ratios.
The weighted average seven-day repo rate fell to 4.7542 percent from 7.4180 percent at the close on Wednesday.
China raised interest rates for the third time this year on Wednesday, making clear that taming inflation remains a top priority even as the growth pace of its vast economy gently eases.
Analysts suggested China was close to, or even at the end, of a cycle of rate rises and the latest move was a pre-emptive strike before another big jump in inflation in data next week heightens depositors' worries about low yields.
Copyright Reuters, 2011