Fears of accelerating inflation have led to a further rate hike from the NSC at 25 bp, announced yesterday. This is the third increase since mid-October. Key interest rate on an annual loans now at 6.06%, while the annual deposit rate - 3%, still well below inflation. Taking into account the continuing high rate of growth in China and negative real interest rates, the People's Bank should further tighten policy further in coming months. Central Bank and the government uses a variety of tools to slow credit growth and reduce inflationary pressures, including higher standards for banks in reserve, an increase of deposit requirements for the purchase of second homes and the unsealing of considerable public food stocks. China is the last Asian Central Bank, which raised the stakes, followed by similar movements in Thailand, India and Indonesia this year. Later this week, may also raise the Bank of Korea, although last month he had raised his bid. Negative real interest rates make the inevitable further tightening of monetary policy in Asia in the coming months. In response to a tightening in China, vysokobetovye currencies such as the Aussie, got hooked after that announcement, the Asian indexes fell and Asian currencies in general have increased. Next week will be published data on inflation in China, which expected annual growth rate of 5.3% compared to December's 4.6%.
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