The Fed raises interest rates, the Chinese central bank has not followed up the central parity of the yuan and then tuned 150 points.

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The Fed raises interest rates, the Chinese central bank has not followed up the central parity of the yuan and then tuned 150 points.

2018-09-28 20:25:02 97 ℃

Zhongxin Jingwei client September 28th The latest data from China Foreign Exchange Trading Center shows that today (28th), the central parity of the RMB against the US dollar was reported at 6.8792, down 150 basis points, for the fourth consecutive day of rumbling, 8 The new low since the 17th. This week, the central parity of the RMB against the US dollar was adjusted to 435 basis points.

Source: China Foreign Exchange Trading Center

In the open market, according to the website of the People’s Bank of China, following the Fed’s rate hike on the 27th After the People's Bank of China did not conduct open market operations, the People's Bank of China did not conduct open market operations today, suspending open market operations for three consecutive days. Today, 40 billion yuan of reverse repurchase expires, with a net return of 40 billion yuan.

The People's Bank of China said that considering the fiscal expenditure at the end of the fiscal period, the total liquidity of the banking system is at a relatively high level, which can absorb the influence of the central bank's reverse repurchase and government bond issuance. No open market operations will be carried out on the 28th of the month.

Industry sources pointed out that under the background of Sino-US trade frictions, the economic trends between China and the United States are not synchronized, and the Chinese central bank has neither the necessary nor the conditions to follow the Fed’s rate hike. In addition, although the current quarter-end financial pressure is not large, but with the financial stability of leverage, anti-risk coordination and infrastructure and local debt-based economic development, future targeted RRR cuts are still expected.

Beijing time on September 27 at 2 am, the Federal Reserve announced a rate hike of 25 basis points, the federal funds target rate range was raised to 2% -2.25%, in line with market expectations. The interest rate hike is the third rate hike by the Fed this year. It is also the 8th rate hike since the Fed started the current round of interest rate hike in 2015. Subsequently, Indonesia, Bahrain, Saudi Arabia, the United Arab Emirates, Indonesia, Qatar, the Philippines, the central bank announced the increase in the benchmark interest rate.

China's Hong Kong and Macau also raised their benchmark interest rates. On the morning of the 27th, the Hong Kong Monetary Authority announced that it would raise the benchmark interest rate from 2.25% to 2.5%. The Macau Monetary Authority also announced a raise of the benchmark interest rate by 25 basis points to 2.50%, the third time since the beginning of the year, the relevant policy rate was raised.

Chen Delin, the president of the Hong Kong Monetary Authority, said that Hong Kong interest will follow the normalization of the United States from a very low level and is a healthy development for the overall economy and asset markets. The pace of interest rate hikes is a commercial decision of the bank and will be carried out step by step. (Zhongxin Jingwei APP)

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