12/14/2017, 10.02
CHINA

After the Fed, China also raises interest rates

Yesterday, the Fed raised rates by 0.25%. A few hours later, Beijing lifted its 7-day and 28-day reverse repurchase agreements by 5 basis points. Bank of China: Only market adjustments. Attempt to limit the flow of capital out of the country.

Beijing (AsiaNews / Agencies) - The Chinese central bank raised its interest rates a few hours after the Fed raised rates for the dollar.

Yesterday, the US Central Bank raised rates by 0.25, taking "solid" gains for the US economy. The move, the third in a year, occurs after a period of very low rates to face the financial crisis.

Today, China lifted its 7-day and 28-day reverse repurchase agreements by 5 basis points. It is the first increase since last March. This choice seems to be in line with Beijing's attempt to curb the flow of capital from the country, in search of greater profits. The Chinese Central Bank has tried to downplay the move. In a statement it claims the established increase is only a market response to the Fed's decision, rather than a positive act by the Bank of China

The Hong Kong Monetary Authority also raised its interest rates to 1.75%. This is due to the fact that the exchange rate of the Hong Kong dollar is tied by a fixed percentage to the US dollar.

Printable version
CLOSE X
See also
Pope talks about the Middle East, the Holy Land and the food crisis with Bush
13/06/2008
Asian markets up but recession fears remain
30/10/2008
White House to stop Beijing's "imperialist" policy in the South China Sea
24/01/2017 15:55
Thousands of factories closing in the Pearl River delta
01/10/2008
The crisis in the dollar worries Riyadh, which is reconsidering the riyal-dollar peg
28/01/2008