PBOC Seen Raising Money Rates Twice in 2017 to Cut Leverage
- One hike of 10 basis points will be in second quarter: survey
- China is far from squeezing out financial market bubbles: ANZ
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China’s central bank will keep a tight rein on money-market rates this year, raising the cost of short-term funds at least twice in moves that will pressure bonds.
That’s the consensus view in a survey of 29 fixed-income traders and analysts, with 20 saying that the People’s Bank of China will increase open-market operation rates by 10 basis points in the second quarter itself. Government bonds will decline for the third quarter in a row in the April-June period, according to the March 24-27 poll. That would be the longest run of losses in six years.