Data from China today confirmed higher interest rates in January. Here’s how.

Here we go, as I said earlier:

In December 2023 Chinese loan Prime rates were 3.45% for the one-year and 4.20% for the five-year:

  • the y/y inflation rate -0.3%

In January 2024 Chinese loan Prime rates were unchanged, still at 3.45% for the one-year and 4.20% for the five-year:

  • and the y/y inflation rate was -0.8%

Yep, real rates rose in China in January.

The stock market noticed …

Happy (Lunar) New year!

ps. China is going on an 8-day holiday beginning tomorrow. Who is going to be bag holding stocks for next week?

pps. The m/m CPI did rise, so there is a silver lining:

JPM expect the CPI to turn positive y/y sometime in 2024:

This article was written by Eamonn Sheridan at www.forexlive.com. Source