Authorities in Beijing have announced they will tighten access to credit in what the government is describing as a “prudent monetary policy” aimed at tackling inflation in the country. China’s inflation spiked at 4.4 per cent this past October—well above the target rate of 3 per cent. The spike in inflation was largely driven by a 10.1 percent jump in food costs and analysts say November inflation might rise still higher. The central bank said in its latest quarterly report it would “gradually return policy to a normal position,” indicating interest rates would rise.
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