Haig Bathgate, Chief Investment Officer, comments in The Scotsman in an article on the outlook for investors in the Chinese markets. With its high growth rate in recent years, after a recent slowdown, investors are being warned to tread carefully.
Haig comments"The one thing that was really worrying us last year was elevated inflation rates in China, which were having a disproportionate impact on food prices and therefore increase the probability of social unrest. When there is significant inflation this means that the Chinese central bank is much less able to stimulate the economy through interest rate decreases – those inflationary pressures have started to subside from the peaks and that means that the Chinese central banks have more tools at their disposal to stimulate the economy."
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