China Hikes Interest Rates for First Time in 3 Years

Friday, October 22, 2010

A Chinese bank staff counts stacks of 100-yuan notes in Huaibei, east China's Anhui province on October 20, 2010. (Stringer/Getty)

China's central bank surprised the global market by increasing its interest rates for the first time since 2007. Being that it's the second largest economy in the world, the decision to increase interest rates has the global economy feeling the effects. Gold and oil prices dropped, while stocks took a negative turn in Europe and the dollar jumped.

Joining us to discuss is Sewell Chan, Washington correspondent for The New York Times.

There is wide speculation on whether or not this is a deal between China and the United States to strengthen the yuan or if Beijing does not have to depend as much on currency appreciation to keep the Chinese economy balanced.


Sewell Chan

Produced by:

Kal Elsebai

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.