China: Rate Hike for a Hot Economy

The mainland's central bank raises interest rates for the third time in less than a year to try to put a lid on China's hyperactive economy

Beijing's financial mandarins have tried ever-so-carefully to calibrate just the right amount of credit tightening to prevent China's $2 trillion-plus, high-speed economy from overheating—without going too far and engineering an unwanted slowdown. It has been difficult, given the massive liquidity sluicing through the economy, and China's still-undeveloped financial markets.

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