Quote "LONDON (MarketWatch) China's central bank announced Tuesday that it would raise its key interest rates for the third time since October in an effort to cool rising inflation pressures. The People's Bank of China said in a statement that it will raise its one-year yuan lending rate to 6.06% from 5.81% effective Wednesday, while boosting the one-year yuan deposit rate to 3% from 2.75%. Rates were previously hiked in October and December. The move appeared to temporarily dent overall risk appetite ..................... The Australian unit is particularly sensitive to PBOC moves due to Australia's proximity to China and its reliance on Chinese demand for Australian raw materials. ............................ The tightening moves come as economists note rising concerns about China's ability to rein in growth and stifle inflationary pressures without triggering a hard landing that could derail a fragile global recovery. Fears of a property bubble have been stoked by stories of empty apartment blocks, with units held as speculative investments." http://www.marketwatch.com/story/china-hikes-interest-rates-to-cool-inflation-2011-02-08ments by Chinese investors.
