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Tuesday, February 11, 2014

PBOC to tolerate "reasonable interest-rate volatility."

The People's Bank of China is prepared to tolerate "reasonable" volatility in money-market interest rates as it attempts to rein in soaring debt in the country. While the PBOC will ensure "appropriate liquidity," it won't fund growth that is dependent on investment and debt. The PBOC's remarks come after repurchase rates spiked to high levels at various points over the past several months, causing ructions in stock markets.

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