PBoC Hikes Again, End of 2014 Easing Cycle That Sparked Stock and Housing Bubble

SCMP: China’s central bank starts Year of the Rooster with ‘groundbreaking’ broad rise in money market rates
In its open market operation on Friday, the seven-day repo rate, a major interest rate between the central bank and commercial banks in the interbank market, was increased to 2.35 per cent from the 2.25 per cent rate before the start of the Lunar New Year holiday; the 14-day and 28-day repo rates were also increased by 0.1 percentage points.

The People’s Bank of China said in a separate statement that it had raised the rates of standing lending facility (SLF) loans on Friday. The overnight SLF rate has been raised to 3.1 per cent from 2.75 per cent in January. Rates for seven-day and one-month SLF loans have also been increased.

Friday’s money market rate increase was unusual because money market rates tended to fall following past Lunar New Year holidays.
Yes, that's exactly what some analysts said when the PBoC hiked before Spring Festival, that it was temporary instead of major change in monetary policy.
Chinese banks lent money too aggressively in January, forcing the PBOC to take counter measures such as introducing a higher money market rate level to cool off the lending frenzy.

iFeng: 央行全面上调资金利率 2014年来的货币宽松结束
China Merchants Securities Xuhan Fei said that years ago, we just speculation the central bank will not only emphasized the long end of the interest rate is not adjusted short end, now it appears to be the long end of the short end of a tune together. This is the central bank's monetary policy is a complete reversal of the signal, means that the monetary easing since 2014 is over.
Chinese policy is following the U.S. Federal Reserve because it cannot defend the yuan. Place your bets as to whether you believe the reflation story or not, because that will be the difference between China hitting its target GDP growth of 6.5 percent or missing. The biggest actor, for now, is the Federal Reserve. If they hike faster than warranted, both the U.S. and Chinese economies are headed for a brick wall.

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