Inflation China

China will cool its economy and reduce consumption of copper China is the first consumer of copper worldwide and decisions taken on its monetary policy will determine next evolutions in quote their prices on metals exchanges. Known is the close relationship of the evolution of demand for copper from a country with its economic activity, rule this applicable also to the world economy in general and copper in an infallible indicator that has turned into the extent of economic recovery. The efforts being made by the Chinese authorities by cooling its economy, in order to curb the increase in inflation, have focused so far on the rise in interest rates. In the past six months rates have increased three times and quite possibly again raise this week. If China complies with the anticipation of new increases in their interest rates to limit their growth and thus curb inflation there will be also reduced, to the same extent, the demand for copper in the country. If we add to this the strong experienced appreciation recent months until reaching historic highs, we can think in upcoming falls in the price of copper. More information on author: dp original author and source of the article