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Ever since I come back, one thing amazes me is how fast China has adopted the western economy indicator and system overall: CPI, PPI, central bank, China Security Regulatory Commission, China Banking Regulatory Commission, China Insurance Regulatory Commission, etc. These are all good, especially the regulatory committe are made of real smart people nowadays. Except sometimes people tend to over react to those indicators and the comments from the head of those committes.
One important news in past weekend is Central Bank raised the interest rate by 0.27. This is a symbolic move amid the recent inflation worry. The CPI exceeded 2% 3 months in a row. The food price, rice, wheat,…is on the rise (good for farmers if they can get all the money). But this raise of interest rate really won’t have too much impact for most people. For instance, a guy only need to pay CNY 300 to 400 more for a CNY 100,000,000 house mortgage. No wonder the stock market quickly recovered from the early dive on Monday morning March 19.