Money Market Rates Surge in China


China’s seven-day repurchase rate has jumped the most since July as The People's Bank of China's abstained from open market operations this week in order to tamp rising inflationary pressure.


The gauge of funding availability in the banking system has been on a steady rise since October 9th and opened at a fresh three-month high of 5 percent on October 24th from a close of 4.05 percent the previous day.

The government is withdrawing liquidity from markets as inflation is at the highest level since February and home prices in China’s four major cities jumped the most since January 2011.

The People's Bank of China's decision to abstain from injecting liquidity this week has given rise to concerns over possible monetary tightening.

Money Market Rates Surge in China


anna@tradingeconomics.com
10/24/2013 10:03:47 AM