The people\’s bank of China financial institutions one-year benchmark interest rates by a quarter of a percentage point, other each class benchmark interest rates also adjusted accordingly. This is the central bank raised interest rates, is also the second year the central declared to follow prudent monetary policy raised interest rates for the first time since.

Video: the central bank raised its one-year benchmark interest rates
Analysts believe the effective control of the continuous high inflation expectations and regulation of housing market may be the main jumping-off place, the central bank raised interest rates for the central bank will also further use of quantitative tools open space. And a quarter within two interest-rate policy brought by the cumulative effect, also can to residents in future asset allocation patterns produce certain effect.

Management of inflation expectations

The central bank\’s monetary policy committee, said LiDaoKui monetary policy steering robust are the most important aspects of management inflation expectations, management of inflation expectations most useful tools are adjusting supply. ShenYin nations chief macro analysts LiHuiYong think, urges the central bank is mainly caused by the two aspects:

One is the inflationary pressures still bigger, raising rates help stabilize residents inflation expectations. 2 it is December loans might again than expected this year, the new breakthrough 7.5 trillion credit target has doubt, by raising rates are expected to curb partial loan demand.

LiHuiYong said, from the rates of the structure, 2 years, 3 years and 5-year deposit interest rates amplitude respectively 0.3%, 0.3% and meet, raised much higher than benchmark interest rates by amplitude, help stabilize long-term capital; 3 months and its half-yearly deposit interest rate hike 0.34% respectively and 0.3%, and also higher than that of benchmark interest rates by amplitude, and improve the cost of capital, blow short-term capital speculation.

Analysts believe that since November around property market turnover and house prices fast rebound, \”star\” repeat of pledges also raises the important reasons.

In addition, the galaxy securities chief economist ZuoXiaoLei (micro bo, said early next year at the end of this year to raise interest rates of different effect. The central bank raised interest rates, mean the end of choice all credit asset prices will be next year in accordance with the interest rates on pricing. At the same time, also increased interest rates continue to adjust the early next year is expected.

May not lead to mass of hot money inflows

The second half of this year, foreign exchange combines rapid growth, increasing the central bank liquidity management of pressure. October new foreign exchange combines 5190.47 billion yuan, up to 30 months to create new highs. November foreign exchange combines dropped back to 3196 billion yuan, still at high throughout the year. American quantitative easing cause global liquidity overflow, hot money inflows emerging economies accelerating. While China\’s central bank means sino-us spreads further expansion.

To this, industry experts said the rates will not lead to hot money inflows mass.

LiDaoKui said that in the dollar, yen and other international major currency rates are near zero, the RMB appreciation strong cases, raising rates is likely to attract some of the \”hot money\” from. The interest rate hikes timing choice is very good. The European and American countries ismeeting the Christmas vacation, markets closed, residents holiday, the fund transfer inconvenience, against \”hot money\” from. Meanwhile, the central bank raised interest rates on market expectations with weak, but also with \”hot money\” game, in order to let the speculative \”hot money\” strong short-term capital is difficult to predict, prevent its massive inflow.

Traffic bank\’s chief economist even ping thinks, because the fed in a period ahead will keep interest rates low level, raising rates after, sino-us rep-resents will continue to expand, can produce certain of hot money guide effect, but the real influence capital inflows factor is the exchange rate and asset price level, spreads factors that influence the relatively weak.

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