Registration / Login
text version
War and Peace

 Hot news

Main page » News » View
Printable version
China raises short-term interest rates in fresh tightening signal
03.02.17 22:32 Economics

China’s central bank surprised financial markets on Friday by raising short-term interest rates on the first day back from a long holiday, in a further sign of a tightening policy bias as the economy shows signs of steadying.

While the increases were modest, they reinforced views that Chinese authorities are intent on both containing capital outflows and reining in risks to the financial system created by years of debt-fuelled stimulus.

Higher interest rates could prod debt-laden firms into deleveraging, though at the risk of stunting growth.

“It appears to be an intent to control a real estate bubble. It could also be aimed at arresting the yuan’s depreciation, although it is on the reverse repo they touched upon and the impact remains to be seen,” said Naoto Saito, chief economic researcher at the Daiwa Institute of Research In Tokyo.

“All in all, it comes across as a move to tweak interest rate levels to accompany a broader monetary policy shift.”

The People’s Bank of China (PBOC) raised the interest rate on open market operation reverse repurchase agreements (repos) by 10 basis points, effective on February 3.

Two banking sources said it also raised the lending rates on its standing lending facility (SLF) short-term loans.

Analysts said the tightening of primarily money market rates suggested the PBOC wanted to retain policy flexibility as it balances the need to keep the economy from slowing again.

In late January, the PBOC raised rates on its medium-term loan facility (MLF) for the first time since it debuted the liquidity tool in 2014. It was the first time it has raised one of its policy interest rates since July 2011.

 

Ðóññêèé
Archive
Forum

 Exclusiveread more rss

» Destruction of Ukraine’s Central Bank
» The World files their 27 Grievances against the United States of America.
» Yom Kippur War Redux – Petrol D0llar’s Last Hurrah
» How the Alchemists saved the Planet in 2019
» What will the US Treaty of Paris look like?
» Addition by Subtraction, (x, y)↦x−y
» Too Little, Too Late, will there be a Romanov ending for the Sudairi Seven?
» Week 21: When economic arguments end, the arms race begins

 Newsread more rss

» Afghan Taliban leader accuses U.S. of creating doubts over pact
» Kyrgyz President Accuses Atambayev of Violating Constitution by Resisting Detention
» Chinese foreign ministry slams U.S. interference in Venezuela
» With an eye on Russia, China and a horse, Pentagon chief visits Mongolia
» Pentagon Claims Iran Uses GPS Jamming in the Gulf So It Can Lure and Seize Foreign Ships
» USAF X-37B Military Space Planes Mystery Mission Circling Earth Hits 700 Days
» China destabilizing Indo-Pacific: U.S. Defense Secretary
» EU must change its negotiating terms for Brexit, says Barclay

 Reportsread more rss

» A Brief History of the CIA’s Dirty War in South Sudan
» US GDP report: Keynes on steroids
» Are Russia and the US Finally on the Same Page in Afghanistan?
» The IMF Takeover of Pakistan
» Voices from Syria’s Rukban Refugee Camp Belie Corporate Media Reporting
» Report Shows Corporations and Bolsonaro Teaming Up to Destroy the Amazon
» Ukraine: the presidents change, but the oligarchical system remains the same
» The Cowardice of Aung San Suu Kyi

 Commentariesread more rss

» The Biggest Threat to the US Indo-Pacific Strategy? Washington Itself.
» Ukraine on the cusp of change
» India’s Looming Agricultural Crisis: A Unique Chance to Change the System?
» The Saker interviews Stephen Karganovic
» Media and Politicians Ignore Oncoming Financial Crisis
» In an astonishing turn, George Soros and Charles Koch team up to end US ‘forever war’ policy
» Vladimir Putin says liberalism has ‘become obsolete’
» You Are Fighting In The Most Important Battle Of All Time

 Analysisread more rss

» A battle for supremacy between China and the US
» UAE Withdrawal from Yemen
» US, Pakistan move in tandem to end Afghan war
» Is Baoshang Bank China’s Lehman Brothers?
» From the Green Revolution to GMOs: Toxic Agriculture Is the Problem Not the Solution
» OPEC+ oil supply cuts signal smooth Gulf sailing
» G20 Osaka: the end of American leadership?
» Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
 
text version The site was founded by Natalia Laval in 2006 © 2006-2024 Inca Group "War and Peace"