latest-rate-hike-in-china-unlikely-to-slow-growth

Latest rate hike in China unlikely to slow growth

With both market and administrative measures failing to slow growth, observers are questioning the influence of China's central government.
The failure of both administrative and monetary measures in China to slow growth is putting the spotlight on how much influence the government has over the economy, according to some commentators. It also raises important questions about the countryÆs stability.

ôIt makes you wonder who actually controls economic activity in the country,ö says one banker.

One lesson is that despite ChinaÆs successful insulation from the subprime debacle in the US, its economic system faces its own special problems.

The interest rate hike announced on Tuesday pushes the cost of the one-year lending rate up 0.18 percentage points to 7.02% û the fourth rate increase this year, and one which will probably be equally ineffective....
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