Two key
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
banks.
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.