Some foreign central banks are increasingly worried about the impact falling Chinese prices and a weaker yuan could have on their economies, following a surprise devaluation in the currency last month.
A cut in banks' reserve requirements announced by the People's Bank of China on Sunday was the largest since the global financial crisis, but markets reacted half-heartedly as traders focused on moves by the securities regulator which they feared could pop a gravity-defying, six-month rally.
In Q2, China's GDP grew at the slowest pace in the last 3 years, but still met expectations. Mark Williams, chief Asia economist, Capital Economics talks about how he sees the Chinese economy shaping up for the rest of this year.
Capital Economics Group's China economist, Mark Williams, in an interview with CNBC-TV18’s Elan Dutta discussed the recent rate hike and what different emerging markets are doing to curb core inflation. He says, one more rate hike is on the anvil in 2011.