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The Federal Reserve's decision to.......>

CHINA PRESS
CHINA PRESS: The Federal Reserve's decision to begin shrinking its balance sheet
will impact the interest rate differential between China and the U.S. by pushing
up U.S. bond yields, the official People's Daily reported Friday. The interest
rate differential between 10-year government securities is expected to remain
between 120 and 150 basis points, so the scale of capital outflows from China
will remain under control, the report said, citing Zhao Qingming, chief
economist with Research Institutes of China Financial Futures Exchange. The
country's foreign exchange reserves are sufficient and its capital account is
being effectively managed, so China can actively defend against any external
shocks and maintain the independence of its monetary policy, Zhao told the
newspaper. (People's Daily)

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