China Squeezes, The World Sneezes
Is this China’s Lehman Moment?
Interbank lending rates exploded higher last week at the behest of the PBoC who is attempting to rein in credit growth
What happened in China last week?
With bank credit in China reportedly growing at a 22-23% per annum, The People’s Bank of China (PBoC) attempted to slow this explosive growth down by hiking the rate at which banks lend to each other (the repo rate). This was a deliberate move to rein in and slow credit growth in the shadow banking system.
Written by Chris Berry, MBA - [ Discovery Investing Web Site ]
- Published: 25 June 2013
- Written by Editor