Economics
Record Cash Crunch to Ease Amid Global Slowdown: China Credit
This article is for subscribers only.
China’s biggest cash shortage will ease in the fourth quarter as the risk of a global economic slump prompts the central bank to halt monetary tightening, a survey of bond analysts showed.
The seven-day repurchase rate, the annualized interest rate banks say they charge each other for one-week loans, will average 3.8 percent, based on the median of 12 estimates in a Bloomberg survey. This quarter’s level of 4.4 percent is the highest in data going back to the start of 2004. Similar rates for dollars, euro and yen have averaged 0.18 percent, 1.21 percent and 0.13 percent in the same period.