China’s central bank,monster beats, the People’s Bank of China, has required banking institutions to further raise the renminbi deposit reserve ratio by 0.5 percent as from January 20,beats by dre, while the suspension of central bills issuance will slightly offset negative impact,christian louboutin pas cher, said Shi Minyi from Huatai Securities.
The move is also aimed to dial back expectations of rate increases and avoid driving up levels in secondary market.
According to Shenyin Wanguo Securities, expectations of rate increases would be inevitably strengthened,the March 4 edition of the American,casque beats, and the central bank bills rate in secondary market will start risign again,chaussure christian louboutin, widening the interest margin.
The suspension of central bill sales will slightly offset the negative impact caused by rising deposit reserves in banks.
China’s central bank on Tuesday halted the routine issuance of one-year bills,christian louboutin,法国人正在附近的街道走动, in an attempt to quell panic caused by mounting expectations of another wave of interest hike, paving way for the increase of deposit reserves for banks.
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The rates of previous one-year central bills have been ascending for three weeks, said a trader with a Shanghai-based joint-stock commercial bank. Despite a probable rosy yield,Polo Ralph Lauren, China’s central bank’s intention to stabilize market rates seems to be clear, the trader added.
The central bank on January 11 sold 1 billion yuan worth of one-year bills at 2.7221 percent in its regular open market operation,casque beats, up for three straight months since it hiked interest rate.
The suspension of one-year bills insurance will not affect the liquidity control as pressures to soak up money are subsiding due to the increase in banks’ deposit reserves.