CHINA ECONOMY STABILIZED

Fed rate rise on cards after China data flags stabilization

Monday, December 14, 2015

China's latest round of economic data showed fresh evidence of stabilization after policymakers unleashed several rounds of monetary and fiscal stimulus.
Bloomberg's monthly China gross domestic product tracker picked up to a 6.85 percent estimated growth pace for November, the best reading since June, after reports on Saturday on industrial production, retail sales and fixed-asset investment all exceeded forecasts.Unexpected strength in China's old growth drivers and renewed vigor in new ones help remove potential hurdles for Federal Reserve chair Janet Yellen as she and her colleagues meet this week to decide whether to raise US interest rates. China has already cut rates to a record low after the slowest growth in 25 years. Stimulus is gaining traction in stabilizing growth, Bloomberg Intelligence economists Fielding Chen and Tom Orlik wrote in a report. Resilient numbers from China clear a potential obstacle to Fed liftoff in the week ahead. BLOOMBERG