Swaps Show PBOC to Raise Rates to 3.5% in 2011: China Credit
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Chinese policy makers will boost benchmark interest rates four times in the next 12 months, more than most of the world’s biggest economies, as they tackle the fastest inflation in two years, trading in swaps shows.
Two-year interest-rate swaps that exchange the one-year official savings rate for a fixed payment rose 52 basis points to 3 percent since the People’s Bank of China raised its key deposit rate on Oct. 19 by 25 basis points to 2.5 percent. Traders are betting on another 100 basis points of increases to