Shanghai Interbank Rate at Two-Month High as Year-End Approaches

  • Banks stocking up on cash to meet regulatory requirements
  • Capital outflows contributed to the rise: Minsheng Securities
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Borrowing costs in Shanghai rose to a two-month high as banks hoarded cash to meet client demand and to satisfy year-end regulatory requirements.

The one-month Shanghai Interbank Offered Rate advanced four basis points to 2.99 percent, the highest since October, according to the National Interbank Funding Center. The rate for three rose to a two-month high of 3.074 percent.