• Wed
  • Oct 22, 2014
  • Updated: 11:35pm

Real Interest Rate

Relief at delay in interest rate rise may be short-lived

Investors may have heaved a sigh of relief after an expected weekend interest rate increase failed to materialise despite rising inflation.

But economists warn that tightening could come within months, or even weeks.

Tuesday, 14 December, 2010, 12:00am

Why China should keep raising interest rates

The recent decision by the People's Bank of China to raise interest rates comes as a surprise because, first, headline inflation is below the central bank's target of 4 per cent and, second, administrative measures to rein in credit growth have been seen as the main tool to prevent the economy from overheating.

9 Nov 2010 - 12:00am

A glimmer of light in the debate over mainland property market

Nothing divides China-watchers as violently as the outlook for mainland property prices.

On one side we have those who believe that Beijing's administrative restrictions introduced back in April have successfully eliminated the market's excesses.

21 Sep 2010 - 12:00am

Rising to the challenge


Skyrocketing oil prices are altering the investment landscape in the region. It's having a knock-on effect on consumers and corporate earnings and, with crude continuing to post fresh records on an almost daily basis, inflation is set to remain the number one policy challenge in the region.

10 Jun 2008 - 12:00am

Immovable currency peg upholds unstoppable inflation

'As regards inflation, given continued economic expansion and high global commodity prices, the underlying inflation rate in 2008 is estimated to rise to 4.5 per cent, while the inflation rate forecast will average 4 per cent over the following four years.

28 Feb 2008 - 12:00am

Negative rates open to debate and not all will gain

HK slips into negative interest rates

SCMP headline, January 24

Not so quick, not so quick, if you please. Just what do we mean by negative interest rates?

25 Jan 2008 - 12:00am

No consensus on implications of mainland inflation statistics

'Food pushes mainland inflation to 11-year high'

SCMP headline

December 12

There are two schools of thought here. One holds that an inflation rate of 6.9 per cent is just an anomaly and there is nothing serious to worry about. The other holds its fingers crossed and is looking for an exit.

13 Dec 2007 - 12:00am

Zhou pledge against inflation points to rise in rates soon

People's Bank of China governor Zhou Xiaochuan has vowed to tackle rising inflation and end negative real interest rates, sending a strong signal that there will be another rate increase.

The remarks by the central bank chief came a day after the statistics bureau said surging food and fuel costs pushed mainland inflation to 6.5 per cent, a 10-year high, last month.

15 Nov 2007 - 12:00am

Brave new world for the equities-shy

Banks roll out products offering yield, security

Unfortunately for Hong Kong's savings-account die-hards, they are caught in the midst of a negative interest rate scenario, a phenomenon that last struck in 2004 when the consumer price index was rising and deposit rates hovered close to 0 per cent.

7 Oct 2007 - 12:00am

Another rate increase sought to fight inflation

The mainland should be more active in tackling inflation by increasing interest rates at a faster pace, a former central bank researcher said yesterday.

Jing Xuecheng, a former deputy director at the research bureau of the People's Bank of China, said borrowing costs should rise by a further 45 basis points to combat rising prices.

28 Sep 2007 - 12:00am

Beijing raises interest rates a fourth time

New step taken in inflation fight

The central bank last night raised interest rates for the fourth time this year, a further sign Beijing is increasingly worried about decade-high inflation and rising liquidity.

22 Aug 2007 - 12:00am


HERE IS THE theory. The United States economy is recovering and the US Federal Reserve Board has now adopted a neutral stance on monetary policy. This suggests that the next move in US interest rates is likely to be up.

25 Mar 2002 - 12:00am

Interest rates imperil Asia's recovery

Time to run that chart again, the one that says most Asian countries had better take some precautions against higher interest rates.

3 Apr 2000 - 12:00am

Open economy the best cure

An open economic structure will help the SAR avoid deepening deflation and rising real interest rates, according to Hang Seng Bank's Economic Monthly . While nominal interest rates in Hong Kong may increase due to rises in the United States and deflationary pressures persist domestically, any pick-up in external demand of goods and services could boost the economy, it said.

8 Oct 1999 - 12:00am

Inflation forecast at minus 1pc as level of private consumption falls

Inflation in Hong Kong will reach minus 1 per cent this year, as the level of private consumption falls, Bank of East Asia (BEA) forecasts.

BEA said in its economic analysis for this month that fears of wage cuts were affecting consumer spending levels.

19 Jan 1999 - 12:00am