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The impact of the People's Bank of......>

CHINA PRESS
CHINA PRESS: The impact of the People's Bank of China's rate hikes on Thursday
will be limited and the move reflected supply and demand in the market in a bid
to guide expectations, the Financial News, a journal run by the PBOC reported
Friday, citing analysts. The interest rate spread between China and the U.S has
expanded to about 160 bps, which means the Federal Reserve rate hike will not
pressure the yuan exchange rate, the report argued. The slight PBOC rate hike
delivered a signal that deleveraging and risk prevention will continue,
indicating the PBOC will raise the rates of its liquidity instruments even when
it is not the proper time to adjust benchmark interest rates, the report said.
The rate move is also intended to balance economic growth, the curbing of asset
bubbles and risk prevention, the report said. (Financial News)

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