50% surveyed believe interest rate hike needed

Updated: 2007-06-13 14:24

Up to 40 percent of people believe that China's economy is overheated, and more than half think the central bank should raise interest rates again, according to a survey conducted by Beijing Sunny-wise Consulting among 636 residents in Beijing, Shanghai and Guangzhou from June 8 to 10.

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Of the interviewees, 49.7 percent think commodity prices will continue to rise, but 44.5 percent do not believe their normal life will be seriously affected. But 40.7 percent of people surveyed feel it is hard to accept the rising prices.

As for interest rates, 38.5 percent of the surveyed believe this has the greatest impact on property mortgage loans. And 36.9 percent say they will consider early loan repayment after buying a house, while 48.4 percent choose to put off their housing plans due to the high interest rates.

Among the stock investors surveyed, 43.3 percent believe interest raise will bring more volatility to the stock market, while 27.1 percent worry that market confidence will sink temporarily. On stock operations, 53.2 percent of investors will look for further market opportunities, and 43.4 percent will not change their investment plans.

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