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China should not hike its interest......>

CHINA PRESS
MNI (Beijing)
CHINA PRESS: China should not hike its interest rates as the economy is at risk
of a downturn and inflation is benign, the China Securities Journal reported,
citing analysts. PBOC should adjust liquidity condition in the interbank market
by raising interbank rates in open market operations, it said. A rate hike may
be feasible under more mature domestic and overseas market conditions, the
journal said.
***COMMENT: The gap between China's real money market rates and policy rates is
widening given the authorities' deleveraging campaign, meanwhile the real loan
rates is also rising faster that the benchmark interest rates, causing two
distortion that needs to be addressed. 

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