Chart of the Day: China’s Real Interest Rate at Almost Three-Year High

One of China’s real interest rates, a gauge that measures actual borrowing costs, hit the highest reading in almost three years in November as deflationary pressure builds.

The real interest rate was 3% last month, rising from 2.7% in October and 1.15% a year earlier, according to Caixin calculations based on official data. That compared to the previous high of 3.15% in February 2021.

China’s Real Interest Rate Goes Up