China’s April trade surplus will cause problems with the US

China recorded a trade surplus of $11.4bn or £7bn in April. This was from a surplus of only $140m in March but was about four times greater than analysts had been expecting. Why does this pose a problem for the US? It is because many Americans believe that the Chinese currency, the yuan, is undervalued. An undervalued currency means that … Continue reading

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China raises interest rates, MPC divided.

China has announced its first rise in interest rates for three years. According to the People’s Bank of China, its one-year lending rate goes up from 5.31% to 5.6% and its one-year deposit rate also rises from 2.25% to 2.5%. Why has China done this? In recent years double-digit rates of economic growth have become familiar in the country. In … Continue reading

Posted by Nigel Tree | Comments Off on China raises interest rates, MPC divided.