EconWatch.com > Risk of China's economy overheating as inflation surges

[Finance Markets: Finance News | UK Personal Financial News & Daily Finance Market News] While the figure is still below the Government’s own inflation target of 3% for the year, they have raised concerns that China’s economy is overheating and pressure will mount on the country’s central bank to hike interest rates and loosen currency controls.

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[Bullfax.com - Market News & Analysis] China's inflation surges in April | www.bullfax.com: China's central bank warned of possible "hidden risks" to the financial system and called for controls on new credit after government data showed new lending surged in January.New lending surged to 1.39 trillion yuan (203.5 billion dollars) last month, and property prices rocketed at the fastest rate since April 2008, figures from the National Bureau of Statistics said.Massive lending in 2009 in China has triggered fears that the excess liquidity is fuelling inflation and feeding a spending spree by speculators, leading to property and stock market bubbles.

[ONN.tv] China's April inflation rises to 2.8 percent | ONN.tv: Foreign companies and investors are watching Chinese inflation because any moves to cool prices might slow stimulus-fueled economic growth that surged to 11.9 percent in the first quarter. That could hurt the global recovery if it weakens demand for foreign iron ore and other imports.

[Bullfax.com - Market News & Analysis] China's consumer prices, bank lending rise in April | www.bullfax.com: China's central bank warned of possible "hidden risks" to the financial system and called for controls on new credit after government data showed new lending surged in January.New lending surged to 1.39 trillion yuan (203.5 billion dollars) last month, and property prices rocketed at the fastest rate since April 2008, figures from the National Bureau of Statistics said.Massive lending in 2009 in China has triggered fears that the excess liquidity is fuelling inflation and feeding a spending spree by speculators, leading to property and stock market bubbles.

[Forex Forecasts and Analysis (ActionForex.com)] USD Higher, Jobless Claims Surge, Manufacturing Gains - Forex ...: AUD traded lower as investors digest today's release of strong economic data from China and what the implications of the Chinese data are for the global economy, China's monetary policy and the Yuan. Acceleration of growth in China increases the risk that the Chinese economy may be overheating and creating asset bubbles.

[Industry News] China Raises Bank Reserve Ratio Third Time This Year to Restrain ...: Glenn Maguire , chief Asia-Pacific economist at Societe Generale SA in Hong Kong, took the same view, saying that “China has been inundated with hot money on the back of yuan revaluation speculation.” A report yesterday, showing manufacturing accelerated in April and material costs jumped, underscored the risk of overheating in the fastest-growing major economy. Winding Back Stimulus Those data, and possibly strong loan growth in April, may have triggered today’s move, said Liu Li-Gang , a Hong Kong-based economist at Australia and New Zealand Banking Group Ltd.

[The Daily Caller - Breaking News, Opinion, Research, and Entertainment] China's central bank hikes banks' reserve minimum | The Daily ...: Analysts believe the People’s Bank of China wants to avoid raising rates until the U.S. Federal Reserve does so, which Beijing would take as confirmation a global recovery is firmly under way. They say Beijing also worries that if it acts before the Fed, it might face an inflow of foreign speculative money hoping to take advantage of higher Chinese rates.

[Finance Markets: Finance News | UK Personal Financial News & Daily Finance Market News] China's economic growth surges ahead: However, there are concerns of China’s economy overheating and pressure is mounting on the country’s central bank to hike interest rates and loosen currency controls.

[Gaea Times (by Simple Thoughts) Breaking News and incisive views 24/7] China's economic growth surges to 11.9 percent in 1st quarter but ...: BEIJING - The year 2010 will be a crucial and a complicated year for China's economic development, Premier Wen Jiabao said at the parliament's annual session Friday, adding "we will balance maintaining stable and comparatively fast economic growth, adjusting economic structure and preventing possible inflation". "This is a crucial year for the country to continue fighting against the global financial crisis while maintaining a steady and comparatively fast economic development and accelerating the transformation of economic growth pattern," Wen said while delivering the government work report to the National People's Congress.

[FuturesBroker.ca] China inflation up as food costs jump; stocks fall on fears of ...: "Investors worry there is a chance of the economy overheating, and that might trigger more government policy tightening," said Huang Xiangbin, an analyst for Cinda Securities in Beijing. The government worries about a surge in housing and other asset prices and is trying to use lending curbs to prevent a dangerous bubble while avoiding an across-the-board rate hike that might slow growth.

[npusb] Brazil rate hike fuels gains in stocks, currency - NewsPlurk: SAO PAULO, April 29 (Reuters) - Brazil's central bank called a rare second auction to buy dollars on Thursday, as the country's currency surged against the... Reuters ( 4/29/2010 10:59:41 AM -08:00 ) .

[Gaea Times (by Simple Thoughts) Breaking News and incisive views 24/7] Palladium, platinum lead commodities rally on improving economic ...: The ICE Futures US dollar index, which measures the dollar against six currencies, fell 0.25 percent.

[Sic Semper Tyrannis] Sic Semper Tyrannis : The Debt Crisis: This dysfunction has been caused, as much more knowledgeable writers like Professor Delong, Professor Krugman, Dean Baker, Yves Smith, Bruce Bartlett, David Cay Johnson, and others have pointed out, by having our economic policies based on what is, essentially, a faith based economics, that had little empirical validity to begin with and has now over the past two years been shown to be completely inaccurate. Another element to this problem is that we've largely divorced our economics issues from our political ones.

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