All the rate hikes whether it's fed in US or PBOC or indeed UK or Europe point to a fall in equities and house prices. Smart money will be moving towards safe havens like gold. I would likely short gbp.
PBOC Seen Mirroring Fed With Hike While Keeping Other Taps Open
The People’s Bank of China will raise borrowing costs in the open market if the U.S. Federal Reserve decides to increase rates this week, according to a Bloomberg survey. A majority of 31 economists said the PBOC will increase by five basis points the rate it charges on reverse-repurchase agreements, which guide funding costs in financial markets, after the Fed’s expected tightening. That decision is due to be announced around 2:00 a.m. Beijing time on Thursday, with a potential PBOC step coming as early as that day. Meanwhile, a similar share of economists said the PBOC will further lower reserve-requirement ratios in the second ... (full story)
- Posted: Jun 13, 2018 2:43am
- Submitted by:Category: Fundamental AnalysisComments: 1 / Views: 672