PBOC Rate Hike Raises Concerns on Growth

The People's Bank of China raised interest rates for the 4th time since October as a means to curb inflation. Financial markets were weighed down as further tightening in China might dampen growth in the world's second largest economy. In the Eurozone, Moody's downgraded Portugal's credit rating amid increased political, budgetary and economic uncertainty in the country. While the ECB will very likely raise interest rates to combat inflation, the move may put peripheral economies at risks. The 2-speed European recovery will continue and damage to peripheral bonds will be aggravated.

Excerpt from: 
PBOC Rate Hike Raises Concerns on Growth