PRIME SYNERGY INDONESIA

Recent concerns over inflationary pressures in several emerging markets have prompted increases in lending rates from a growing number of central banks. China’s central bank – the People’s Bank of China (PBC) – raised interest rates in early February by 0.25 percent on one year and long term lending rates; the third hike since mid-October with more increases expected in the first half of the year. India has pushed its marker up 50 basis points to 13 percent in late January and the Russian Bank raised its lending rate for the first time since December 2008 over concerns of consumer price increases. While the hikes could signal a slower phase of growth for coal powered economies like China, the moves are only short-term adjustments as longer term prospects are expected to remain strong.