As China's Economy Tightens, Rates May Fall

Photograph by Nelson Ching/Bloomberg

Even as Beijing continues to be gripped with uncertainty and rumors of political intrigue surrounding the ouster of a populist leader captivate the blogosphere, more mundane things are on policy makers minds. The release of a manufacturing index suggests tougher times ahead for the Chinese economy and may provide room for interest rate cuts ahead. Longer term, many economists argue that China must liberalize interest rates, still tightly controlled by Beijing.

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