PBOC: Rate adjustment helps market to shape reasonable interest rate expectations

Omkar Godbole FXStreet Contributor

The People's Bank of China is explaining the rationale behind its decision to hike seven-day repo rate by 5 basis points.

Key quotes (source: Reuters)

Rate adjustment helps market to shape reasonable interest rate expectations
Rate increase can help stabilize macro leverage ratio
Interest rate adjustment can further narrow rate spread between OMOs and money market
Upward adjustment of interest rate meets market expectations
Rate adjustment will guide reasonable growth in credit and scale of social financing

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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