IMF: China at risk of ‘disinflationary feedback loop'
‘Durable' disinflationary forces pressure real interest rates
Slowing inflation caused by a property glut could trip up China's shift towards consumption-led growth and cripple foreign investors who have loaded up on Chinese real estate bonds, warns the International Monetary Fund (IMF) in its flagship global financial stability report.
The country's annualised inflation rate rose 1.4% in March, according to figures released last week, short of the People's Bank of China's (PBoC) 3% target.
The number reflects lower oil and food prices, but also more
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