16.6.11

Soros Says China Missed Window to Stem Inflation, Now Risks ‘Hard Landing’

China has missed its opportunity to stem inflation and may now risk a hard landing, billionaire investor George Soros said.

The world’s second-largest economy is in a “bit of a bubble,” Soros, 80, said today at a conference in Oslo. There are some signs that China is “losing control,” he said.

China today ordered lenders to set aside more cash as reserves after inflation last month accelerated at the fastest pace in almost three years. Consumer prices rose an annual 5.5 percent in May, even after the central bank raised interest rates four times since September. Inflation has exceeded the government’s 4 percent target every month this year.

China’s formula for steering its economy is “running out of steam,” Soros said, adding the country is seeing the beginnings of wage-price inflation.

http://www.bloomberg.com/news/2011-06-14/soros-says-china-missed-window-to-stem-inflation-now-risks-hard-landing-.html

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