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3 Jun 2015
China takes steps on interest rate liberalization - BBH
FXStreet (Barcelona) - Analysts at Brown Brothers Harriman explained
that China took another important step towards interest rate liberalization overnight.
Key Quotes:
"The PBOC issued guidelines for certificates of deposits (CDs). The instruments will be classified as a form of deposit, hence covered by the deposit insurance system."
"The next step is to soften the upper limit for deposit rate. The move is part of the pack of policy measures which, amongst other things, are helping to deflate the shadow banking system by offering an alternative vehicle for funds to go into."
"Separately, HSBC’s China’s May services and composite PMI were, on net, stronger. The former was about steady from the previous month at 51.2, while the later rose to 53.5 from 52.9, the highest levels since September 2014."
that China took another important step towards interest rate liberalization overnight.
Key Quotes:
"The PBOC issued guidelines for certificates of deposits (CDs). The instruments will be classified as a form of deposit, hence covered by the deposit insurance system."
"The next step is to soften the upper limit for deposit rate. The move is part of the pack of policy measures which, amongst other things, are helping to deflate the shadow banking system by offering an alternative vehicle for funds to go into."
"Separately, HSBC’s China’s May services and composite PMI were, on net, stronger. The former was about steady from the previous month at 51.2, while the later rose to 53.5 from 52.9, the highest levels since September 2014."