China Interest Rate

The benchmark interest rate in China was last recorded at 6 percent. Interest Rate in China is reported by the The People's Bank of China. Interest Rate in China averaged 6.42 Percent from 1996 until 2014, reaching an all time high of 10.98 Percent in June of 1996 and a record low of 5.31 Percent in February of 2002. In China, interest rates decisions are taken by The Peoples' Bank of China Monetary Policy Committee. The PBC administers two different benchmark interest rates: one year lending and one year deposit rate. This page provides - China Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2014-04-16

Actual Previous Highest Lowest Forecast Dates Unit Frequency
6.00 6.00 10.98 5.31 6.00 | 2014/04 1996 - 2014 Percent Monthly

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China Interest Rate
LIST BY COUNTRY

Money Last Previous Highest Lowest Forecast Unit
Banks Balance Sheet 1050.00 2014-03-15 644.50 1890.00 -32.10 808.21 2014-04-30 CNY Billion [+]
Central Bank Balance Sheet 325019.77 2014-02-28 331181.51 331181.51 34443.90 324256.52 2014-02-28 CNY Hundred Millions [+]
Foreign Exchange Reserves 3950000.00 2014-03-31 3820000.00 3950000.00 2262.00 4001951.21 2014-04-30 USD Million [+]
Interbank Rate 4.97 2014-04-11 3.85 9.89 0.00 5.75 2014-05-31 Percent [+]
Loan Growth 13.90 2014-02-28 14.00 34.74 10.60 13.26 2014-03-31 Percent [+]
Loans To Private Sector 133038.25 2014-02-28 132882.79 133038.25 59105.90 134588.29 2014-03-31 Hundreds CNY Million [+]
Money Supply M0 6230.00 2014-02-28 7650.00 7650.00 17.85 6388.43 2014-03-31 CNY Billion [+]
Money Supply M1 31660.00 2014-02-28 31490.00 33726.06 74.51 32686.85 2014-03-31 CNY Billion [+]
Money Supply M2 116070.00 2014-03-31 113180.00 116070.00 5840.10 116413.40 2014-04-30 CNY Billion [+]
Interest Rate 6.00 2014-03-31 6.00 10.98 5.31 6.00 2014-04-30 Percent [+]
[+]


PBOC Widens Yuan’s Daily Trading Band

People’s Bank of China decided on March 15th, 2014 to widen the trading band, allowing the Yuan to fluctuate by 2 percent from the parity daily, up from the previous 1 percent target. The decision, effective from March 17th aims to enable the market to play its roles and make the Yuan a freer currency.

Excerpt from the announcement by the People’s Bank of China:

The foreign exchange market is developing in a sound manner and the market participants are increasingly strengthening their pricing and risk management capacities. In order to meet the demand of market development, give market a bigger role in exchange rate pricing, and build a managed floating exchange rate regime based on market supply and demand, the PBC has decided to expand the floating band of the exchange rate of RMB against US dollar on the foreign exchange.

Effective from 17 March 2014 onwards, the floating band of RMB against US dollar on the inter-bank spot foreign exchange market is enlarged from 1 percent to 2 percent, i.e., on every trading day on the inter-bank spot market, the trading prices of RMB against U.S. dollar will fluctuate within a band of ±2 percent below and above the central parity as released by the China Foreign Exchange Trade System on that day. On each business day, the spread between the RMB/USD buying and selling prices offered by the designated foreign exchange banks to their clients shall be within 3 percent of the published central parity of US dollar on that day, instead of 2 percent.

The PBC will continue to prove the market-based RMB exchange rate regime, continue to enable the market to play its roles, enhance the flexibility of RMB exchange rate in both directions, and keep the RMB exchange rate basically stable at an adaptive and equilibrium level.

Joana Taborda | joana.taborda@tradingeconomics.com
3/17/2014 10:01:45 AM

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People’s Bank of China Drains Funds to Curb Lending Surge
On February 18th, 2014, People’s Bank of China drained CNY 48 billion (USD 7.9 billion) from money markets to absorb liquidity, as bank lending jumped more than expected in January. Published on 2014-02-18

China Interbank Rate Declines as PBOC Injects Cash
China’s benchmark money-market rate declined 88 basis points to a weighted average of 5.4 percent on January 21st as the People's Bank of China injected more than 255 billion yuan (USD 42 billion) to meet cash demand. The day before, the seven day repo rate reached as high as 7.5 percent. Published on 2014-01-21


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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