China inflation up 8.5% in April
China announced fresh monetary tightening measures on Monday after inflation data showed price rises of 8.5 per cent in April, the second highest monthly figure for 12 years.
The People’s Bank of China lifted the share of funds that commercial banks must leave on deposit with the central bank by 50 basis points to 16.5 per cent, the fourth such increase this year.
The renminbi has stalled in recent weeks against the dollar, after appreciating at an annualised rate of nearly 20 per cent in the first quarter of this year. (source: FT)
The graph below shows recent slowdown of Yuan’s appreciation.