The Sydney Morning Herald has today reported some banks in China have raised interest rates on property loans by as much as 10 to 45% after a surge in credit growth this month. New loans issued to the 24 of January exceeded twice the amount that was loaned in December.
Meanwhile Beijing has launched its own control measures, increasing the deposit required on second and subsequent housing loan purchases to 60 percent, up from 50 percent, with interest rates on such loans to be at least 10 percent higher than the central banks benchmark lending rate.
All eyes are now on China’s central bank this weekend to see if they will raise the benchmark lending rate.
Premier Wen Jiabao told citizens in December that “I made a promise to the Chinese people last year that I would try to keep housing prices at a reasonable level during my tenure, and I won’t shrink from that goal,”
» Chinese banks hike rates by as much as 45% – The Sydney Morning Herald, 27th January 2011.
» China property shares suffer from latest policy moves – Market Watch, 26th January 2011.