Rate rise talk pushes dollar upwards

Rate rise talk pushes dollar upwards

China’s central bank has moved quickly to boost domestic monetary policy, with the People’s Bank of China (PBOC) today easing the country’s two-tiered bond rate to support growth. The BOJ’s move is thought to be in response to the prospect of slowing global demand and slowing U.S. economic growth, especially after a pair of jobs reports on Friday.

“The BoJ’s announcement was seen as an attempt to bring some stability to the markets, since the rece더킹카지노nt report from the US shojarvees.comwed that global trade remains weak,” said BIS.

The BOJ said it would increase the rate to 1.5%, a level similar to levels seen in the US and European economies, to encourage domestic dema더킹카지노nd, which remains weak due to slower global demand growth, higher inflation and stronger commodity prices. It will use the 1.5% interest rate for domestic consumption and other financial transactions, and raise the bank’s interest rate to 6.5% for short-term purchases.

“The 1.5% rate should be seen as a good sign of confidence in the economy,” the central bank said in a statement.

The BOJ’s move comes after China’s main credit rating agency Moody’s Investors Service upgraded the country’s rating to “junk” from “junk” on Thursday. Earlier in September, Chinese government officials warned investors of a potential slowing economy and the risk that their funds would be stripped from their accounts, according to Reuters.

The BOJ’s easing target may also be to attract money to the bank, which has just $32 billion in foreign reserves, according to Moody’s.

The BOJ’s target of just $100 billion in foreign reserve funds, which have an annual value of $16 billion, is on a par with the IMF.

SHARE THIS POST

  • Facebook
  • Twitter
  • Myspace
  • Google Buzz
  • Reddit
  • Stumnleupon
  • Delicious
  • Digg
  • Technorati

Leave A Response