China Hikes Rates Again, As Inflation Blows Away Expectations

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China just announced the fourth rate hike of the year.

The PBoC will up the reserve requirement ratio by 50 basis points to a record 20.5%.

This was expected after 5.1% consumer price inflation blew away expectations on Friday.

Just weeks ago it looked like the Chinese tightening cycle was ending. Goldman recommended buying into China as the government let things pick up.

Check out Hugh Hendry’s guide to shorting China >