Category: Money tips Release Date: 2007-07-01
And Thursday this week, two regular central ticket distribution in the size of the central bank issued a total of 400 billion in one-year period of the central passes, and the central voting in March, the interest rate were 2.48% and 2.18%, respectively, an increase last week 8BP and 4BP. In addition the central bank has also issued 100 billion yuan this week, three directional one-year central ticket, interest rate 2.11%, and a month ago, a rate equivalent to the directional Issuance. Deduction due this week, notes and repurchase, the central bank base money withdrawn from circulation this week, 50 billion yuan.
Macroeconomic overheating has been further supported by the latest data, while May's trade surplus is as high as 13 billion U.S. dollars, in May or China's 20th five months of consecutive trade surplus. In addition, the RMB exchange rate one month after the re-break the 8RMB/USD integer position, a slight appreciation of the yuan and continuous trade surplus may continue to push financial institutions to Waihuizhankuan scale.
Data on the central bank show that in May the orientation of such instruments to commercial bank credit expansion impulse constraints limited effect, financial institutions, the credit balance of the month an additional 2,000 billion yuan from the previous month, while the first five months of this year, new lending, the central bank has already accounted for the beginning of project near Qi Cheng. Nevertheless, financial institutions, savings and loan in May are still maintained a steady growth in poor, with the central bank control the further implementation of credit policy, we expect financial institutions, savings and loan poor likely to accelerate growth and liquidity of financial markets constitute a strong support.
Objectives of monetary policy, money supply targets and objectives of difficulty in keeping the interest rate. Last month, the central bank tightening policy orientation of the central driving higher voting rate for 12 weeks and have been significantly higher than the cost of capital of financial institutions. Such structural adjustment austerity policies restricting effects of credit expansion remains to be seen, but the sustained high growth in money supply and interest rates will increase the likelihood of inflation. While we continue to grow market liquidity confident, but the central bank on the open market continuously withdrawing currency from circulation will continue to be pulled on market interest rates, bond market, small adjustments may continue.
