China raises rates 25bp
A tightening measure was about due in China: it’s been 25 days since the last one, against an average of 17 days since October. The People’s Bank of China just increased rates by a quarter of a point,...
View ArticleClik here to view.
Yuan update
Domestic inflation seems a much likelier explanation for the recent appreciation of the yuan than American pressure. Many commentators have referred to the Chinese “bowing to pressure” or otherwise...
View ArticleChina: Rumours of reserve ratio hike
Some small- and medium- sized deposit-taking banks will need to keep more funds with the central bank following a lending binge at the start of the year, according to reports in the official China...
View ArticleClik here to view.
China raises reserve requirements 50bp
The pace is picking up. China is to tighten policy again, raising reserve requirements by 50bp effective February 24. The news follows a rate rise ten days ago. The People’s Bank’s promise of...
View ArticlePBoC: capital inflows shouldn’t stop rate rises
Interest rates are back in vogue at the People’s Bank: the concern over capital inflows shouldn’t reduce the case for using them, governor Zhou has said. He also said that raising banks’ reserve...
View ArticleClik here to view.
China raises reserve requirements 50bp
Large Chinese lenders will need to keep a fifth of their deposits with the central bank from March 25, after the People’s Bank of China announced an increase in reserve requirements. Individual banks...
View ArticlePBoC seen raising HK yuan rates
Hong Kong’s yuan market is set to receive a boost from China’s central bank. The People’s Bank of China plans to raise the territory’s yuan clearing rate and is considering an increase in deposit rate,...
View ArticleChina raises rates 25bp
For the fourth time in less than six months, China has raised rates. The quarter point increase leaves the one-year deposit rate at 3.25 per cent and the one-year lending rate at 6.31 per cent, each a...
View ArticleLearn from us, BoJ economists tell China
The Bank of Japan did its bit for Sino-Japanese relations on Wednesday by publishing a paper which calls on Chinese policymakers to do what Tokyo did in the 1970s and rebalance their economy....
View ArticleClik here to view.
The debt dragon: What do you want to know about China and its credit habit?
The debt dragon: A monster is rearing its ugly head in China and it is called debt. Whether government, corporate, or even household, it is all on the rise, shooting up from 130 per cent of economic...
View ArticleChina: Stay alert for QE2-fuelled bubbles
A deputy governor at the People’s Bank of China has indirectly criticised the Fed’s $600bn stimulus plan, saying emerging market economies will have to stay alert for inflation and bubbles as a result...
View ArticlePeople’s Bank raises reserve requirements 50bp
More on that China rumour (which is no longer a rumour). The People’s Bank does plan to raise the deposit reserve requirement by 50bp, broadening and making permanent a temporary measure introduced...
View ArticleGreenspan’s message to the G20
Former Fed chair Alan Greenspan has an article in today’s FT. It’s quite blunt about China and the US. “Both may be right about each other,” he says. “America is pursuing a policy of currency...
View ArticleRumours of further Chinese rate rise
Chinese equities have plummeted on rumours that the People’s Bank of China plans to raise rates again to combat inflation, which came in at 4.4 per cent for October. Consumer prices rose substantially...
View ArticlePBoC raises reserve ratio 50bp
Monetary tightening in China just sped up. The Chinese central bank has just announced another 50bp increase in the deposit reserve ratio – which will happen at the end of November. The previous hike...
View ArticleChina raises reserve requirements 50bp
China’s biggest banks will need to place 19 per cent of their deposits with their central bank from December 20. The People’s Bank of China has raised the depository reserve requirement by 50bp for the...
View ArticleAnything but rate hike policy in China
Remember how every man and his dog were speculating about an imminent interest rate hike in China? Well it seems most analysts have now changed their tune. From Bloomberg on Monday: China’s benchmark...
View ArticleClik here to view.
China tightens policy & signals yuan flexibility
Every two weeks, on average. That’s how often China is introducing some form of tightening at the moment. The People’s Bank has just increased the reserve ratio again, by 50 basis points, or a half of...
View ArticleDebt security, II
China and Russia sold off substantial amounts of US debt during December – a month that saw the biggest treasuries sell-off since the collapse of Lehman’s. Market commentators entered denial mode: this...
View ArticleClik here to view.
China & US inflation
An important question about US inflation in the coming year or two is the extent to which rising commodity prices will feed into core inflation. As discussed in the piece that Chris and I did last...
View Article
