subject: Chinese market rumours of rumors that traders interest and media [print this page] A group of wise persons, composed of market transactions are like a child grow up, every time you hear someone called "Wolf" will be afraid of. Last week the Chinese market rumours of rumors that traders interest and media are going to extract messages, stock and bond market has declined, the Bureau of the economic data in advance of the August, many officials notice day speech let rumors, real interest rates.We calm down hold the interest of the cause, the brains behind the reason supporting the interest rate or clich of high inflation and the so-called "negative interest rates." China's inflation uplift is a fact, but China's monetary policy Louis Vuitton is the number of regulatory and non-price factor. Currently still in accordance with the new annual 7.5 trillion RMB credit plans, credit has tightened the signs, and bankers asked voucher survey results show that more bankers believe that monetary policy is appropriate level (seasonally adjusted after results), does not appear like in the previous round of inflation rising proportion when considers appropriate rapid decline, this means that a credit limit without any further tightening, and loan demand climate index declined during the second quarter, which represents a further tightening of the credit lines of necessity in the cut.
If none of the tightening of credit, then the direction of monetary policy was still further tight Mody, might also interest you? someone will say the interest rate can control inflation expectations, rather than substantive tightened. More convenient than the interest rate then, smaller side effects is to raise the interest rate on the inter-bank market, a one-year commercial release rate, which can give a signal to the market and the general public, but in the past, in the interest rate is often first appears this signal. But last week's Central Bank, also in the open market have injected a 710 billion of Replica Handbags funds, do not expose to tighten the funding side of the policy direction. Moreover, credit control, caused by the difficulties of small and medium-sized and large enterprises bond financing rate remains low, three-year medium-term AA grade issuance rates have only 4 per cent, far below the same period of the loan interest rate, so even if the Bank's further monetary tightening, then its reasonable policy choice, it should be to increase the interest rates on the interbank market, rather than the interest rate level.
It was also stated that, together with interest without the pricing, you can reach the inflation and increase the financial burden of multiple enterprises. Indeed, regardless of method of calculation, the current Chinese have been in a negative real interest rates, however, that solves the "negative real interest rate hikes," you need at least 3 times, and when we see China's economy has slowed, external demand is slowing down, the United States to start a new round of economic stimulus plan, introduce further austerity policy requires great courage. In 2004, China had already been Hermes Bags in decline in the CPI, has a, then the interest rate is the interest rate cycle in the United States entered into China to follow policies, with the current environment is completely different. Therefore, many times the interest settlement "negative real interest rates". In fact, if you tighten the inter-bank market liquidity and increase the rate of return on the inter-bank market, you can increase the Bank's financing products and money market funds, so as to achieve stability, the role of the inhibitor of inflation.
The author is not to say that China does not exist, the problem of inflation from the circulation of cash (M0), the proportion of total M2, Chinese residents hold cash ratio has reached a historically high level excluding the long-term trends, using the cycle measurement, which reflects the rising inflation expectations of residents. However, enterprises demand deposits accounted for continuation of proportion is 26 months since the decline in fixed asset investment growth, is still slowing down, the impact of China's Chanel Bags economic fluctuations of the main factors is the "investment" and "currency", its growth rate is decreasing, indicating that inflation should be short-term fluctuations in the two quarter tended to decline and rise of long-term trends in inflation does not contradict, but monetary policy aimed at responding to short-term fluctuations and, therefore, further tightening of monetary policy are less likely.
We have seen, the Government regulation of food prices to focus on the supply side, on the futures market funds survey also reflects the Government will restrict food financial demand due to the Chinese people's income does not appear to significantly accelerate the increase in real spending growth is lower for a consumer's actual demand will not be sustained and rapid economic growth, once food be suppressed in the financial requirements, the short-term supply problem is resolved, the CPI would obey the Gucci Bags investment and currency fluctuations. Regulation in accordance with the previous model, the Central Bank in the CPI in the period of constant innovation, the Central Bank will generally improve the commercial rate, tighten the inter-bank market liquidity to the money market interest rates, policies, improve the deposit and loan interest rate. Market stop spreading the rumor in the ambush, this rumor is not the first time. Recently, the inter-bank market situation in the supply of funds, third quarter funding face should not appear similar to the second quarter of the tension, the funds will reach a high of Designer Handbags second quarter levels. Part of the reason is that some financial institutions have begun early reserves liquidity. Since this week, one month or more cross-quarter funds turnover increased rapidly.
Chinese market rumours of rumors that traders interest and media
