China funding rate to rise in coming months – Morgan Stanley

Dhwani Mehta FXStreet

Analysts at Morgan Stanley, in their latest note, warned that China’s funding rate is expected to rise in coming months, in the wake of Moody’s downgrade of China’s credit ratings.

Key Points:

Expect a 40 to 50 bp rise in the interbank lending rate in the next few months

This is an implication of the Mood's downgrade decision today

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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