Chart: China’s real deposit rates turning more positive9 July, 2012, 10:33. Posted by Zarathustra
With inflation falling to 2.2% yoy, real interest rates have turned even more positive in June. Even without taking the increased deposit rates ceiling into account, with 1-year deposit rate at 3.25% and inflation at 2.2%, 1-year real deposit rate has increased to 1.05% in June. As inflation rate appears to be falling faster than the pace of interest rate cuts at the moment, we could very well see real rates turning even more positive.