Credit Suisse’s economics team issued a note today on China’s rising inflation, with the consumer price index over night reporting a rise in prices of 2.8% in April, higher than expected.
“We think the pressure from the negative real interest rate will continue to rise,” says the report. “Prompting the central bank to raise rates. We look for three to four rate hikes, by about 27 basis points each, for the rest of the year,” for a total rise of 189 to 216 basis points before the end of 2011.
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