Monday, 8 January 2018 10:32 WIB |
FISCAL & MONETARY |chinaPBOC
Faster factory inflation and higher industrial profits in the past year have created space for an increase in overall interest rates, People™s Bank of China researcher Ji Min said, according to a report by China Daily.
Inflation and foreign exchange rates also have to be factored in before adjusting interest rates, the newspaper cited Ji, deputy head of the central bank™s research bureau, as saying.
China™s central bank will make modest increases in money-market rates in 2018 as it aims to keep up the pressure on deleveraging and prevent too much divergence with U.S. policy, according to a Bloomberg survey published earlier this month.
Economists don™t forecast any change to the benchmark rate, which sets borrowing costs economy-wide, through early 2020, according to a separate survey by Bloomberg. The central bank has kept the one-year lending rate unchanged since October 2015.
Source : Bloomberg