lending rates have risen sharply in the past month in what economists say is a response to
China's clampdown on bank lending.
In the past
month, the interbank lending rate – at which banks lend funds to each other – has risen to
2.96 percent from 2.1 percent, while interest rates on government bonds climbed to 3.4
percent from 2.8 percent.
The higher rates follow new
measures instituted by policy-makers to slow the flood of loans into the economy, including
an increase in the deposit reserve requirement to 7 percent from 6 percent, stiffer rules for
loans to property developers and higher capital adequacy standards for
Economists, however, are divided over whether
this will add to upward pressure on the RMB or provide a soft landing for the economy
without affecting the currency.