trending Market Intelligence /marketintelligence/en/news-insights/trending/ouunacpcokfb5z2tiladpw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

China's central bank shrugs off Fed hike, maintains reverse repo rates

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

China's central bank shrugs off Fed hike, maintains reverse repo rates

The People's Bank of China maintained the rates for certain reverse repurchase agreements despite the U.S. Federal Reserve's decision to raise its benchmark rate for the second time in 2018.

The Chinese central bank's seven-day, 14-day and 28-day reverse repo rates stand at 2.55%, 2.70% and 2.85%, respectively. The bank also kept its benchmark one-year lending and deposit rates unchanged, according to Reuters.

"PBoC not following the Fed is more a signal to the market than a significant impact," Iris Pang, an economist for Greater China at ING Research, wrote. "It shows that credit and liquidity are tight in the middle of financial deleveraging reform," Pang added, suggesting that the Chinese central bank needs to inject more liquidity into the system to avoid interest rates rising.

The central bank's decision to not follow the Fed's hike for the first time lowers the chances of it following future Fed hikes, "and we would rely more on future liquidity tightness and targeted [reverse repurchase rate] cuts to gauge the possibility of PBoC's rate hike of interbank rates," Pang said.

The central bank launched a 150 billion Chinese yuan reverse repurchase operation June 14.

As of June 13, US$1 was equivalent to 6.40 Chinese yuan.