16 July 2019

China key money market rate at 6-month high, WSJ says

Interest rates in China’s money markets jumped Friday to levels last seen during the cash crunch in the summer, as banks continue to struggle to raise funds in the interbank market, the Wall Street Journal reported. The borrowing costs initially fell early Friday after the central bank said the previous day that it had recently injected cash into the system, but pushed higher later, the report said. The benchmark weighted average of the seven-day repurchase agreement rate rose to 7.75 percent — the highest level since June 21 — from Thursday’s close of 7.06 percent. The central bank said on its microblog account Thursday that the recent spike is being driven by factors such as fiscal spending and year-end expenditures.

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