Chinese President Xi Jinping announced that manufacturer expansion will set the country's economy in a more stable foothold. This was according to the Xinhua News Agency report last May 31. The government is directed towards making policies to avoid interest rate cuts this year. On June 1, a pick-up in growth was shown through an official release of the manufacturing index. From 50.6% in April, it has grown to 50.8% in May.
The economic stabilization of China indicates a more strengthened Asia, as Japan also reported to have increased in its factory output. According to Bloomberg News, the People's Bank of China was also reported to raise interest rates in the coming year.
According to an estimate from Standard Chartered, there will be a 25-basis point rate that will increase lending and deposit rates. These are to transpire in the fourth quarter and another two in during the first half of 2014. This will make annual borrowing cost to 6.75% and savings rates to be at 3.75% by end of June next year.
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