Shares 137 Views
Uncategorized

PBOC in action – ANZ

Analysts at ANZ explained that the PBOC repriced the cost of short-term funding by raising the 7-day reverse repo rate by 10bps to 2.35%.

Key Quotes:

“This action is significant as it suggests the PBoC will adopt a flexible interest rate regime in 2017.

Since the PBoC has held the reverse repo rate at 2.25% since October 2015, this change is ground-breaking and suggests that the central bank will change the onshore rates more frequently.

We stick to our call for a prudent monetary policy stance but the policy actions associated with this stance need to be reinterpreted.

The bottom line is to prevent a cash crunch amidst deleveraging and deflating financial bubbles in certain sectors.

Going forward, the PBoC will continue to focus on establishing a yield curve with interest rate risks tilted towards the upside.”

You may be interested

shares13 views

Opinion | What is a Security Token Offering (STO) and Why You Need an Advisor

Brian Evans - Oct 08, 2018

About the Author: Jaron Lukasiewicz is the CEO and founder of Influential Capital. Jaron has been an executive in the industry since 2012, previously serving as CEO of Coinsetter, one…

shares18 views

World Economic Forum: Blockchains improve Global Economy

Brian Evans - Oct 08, 2018

Beginning as a technology for financial ledgers only, blockchains have grown to become the corporate hype word around the globe. It’s touted as the invention that will…

shares24 views

‘Rehypothecation’: More about the Wall Street Practice that Could Ruin Bitcoin

Brian Evans - Oct 08, 2018

Note: This is part 4 in a multi-part article series exploring rehypothecation and commingling in bitcoin and other cryptocurrency markets. Part 1 and part 2 are interviews…

Most from this category

%d bloggers like this: