16 January 2018
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  • » 12/14/2017, 10.02


    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.

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    See also

    01/10/2008 CHINA
    Thousands of factories closing in the Pearl River delta
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    30/10/2008 ASIA
    Asian markets up but recession fears remain
    All stock exchanges gain ground thanks to lower interest rates. Even Tokyo is considering cutting its interest rate.

    11/03/2008 CHINA
    Chinese inflation, at 8.7%, risks spinning out of control
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    20/05/2008 CHINA
    Sichuan quake causes about 10 billion dollars in damages to enterprises
    Industry Ministry announces losses. Mainland and Hong Kong banks open lines of credit at zero or long-term interest loans.

    19/12/2008 ASIA - UNITED STATES
    U.S. debt approaches insolvency; Chinese currency reserves at risk
    In a few months, America's public debt has grown to more than 100% of GDP. Fear of a valuation crisis for the dollar, with tremendous consequences for Asian countries, major exporters to the United States.

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