Awdry: Three more rate hikes for China to tackle inflation

Henderson's Charlie Awdry expects China will raise interest rates three more times this year to quell soaring inflation.

Figures last week showed inflation had hit a three-year high of 5.4%, while GDP growth climbed to 9.7% for the first quarter of 2011. Awdry, who heads up the £724m Gartmore China Opportunities fund, expects there will be an interest rate rise next quarter. “Chinese interest rates will need to rise three more times this year to combat sticky inflation. Pressures have been growing on the back of commodity input price increases, particularly oil,” says Awdry. Interest rates have risen four times since last October but so far it has failed to cool inflation across the region. The...