The wheels of tightening may be gaining momentum in China, after February’s higher than anticipated inflation release. High inflation leading to negative real deposit rates may entice investors to withdraw deposits and invest in more speculative assets, potentially spurring what is arguably already a bubble in the country’s housing sector. I believe that China has […]
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RRR
Judging by the market’s reaction, investors were blinded sided today when Chinese officials increase their reserve requirement ratio for the second time during its renewed tightening cycle. But, really the only surprise was that the hike occurred just prior to the Chinese New Year, which is a week long holiday. I have been stating for […]