In a Surprising Move PBOC Leaves Interest Rate Unchanged 

Trading Tips

This week ended for Asian markets with a much-needed respite from the catastrophic losses they suffered for several days in a row.

On Friday morning, China fixed an annual loan rate of 4.05%, same as a month earlier. It also set the five-year rate at 4.75%, which also did not change compared to a month earlier.

With this step, China ignored investors’ expectations about interest rate cuts, which would be in line with the actions of central banks around the world. Global regulators have eased access to credit funds and offered economic stimulus packages to prevent the recession caused by the coronavirus pandemic.

The Chinese Shanghai Composite Index rose 1.15%, while Shenzhen Component closed with 1.13% gain. Hong Kong’s Hang Seng Index advanced markedly by 3.38%, offsetting previous decline shortly after markets opening. South Korea’s KOSPI Index surged 3.16%.
Japanese Nikkei 225 were closed on Friday due to a national holiday.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Share this post:

Let’s block ads! (Why?)

Tickmill

Leave a Reply

Your email address will not be published. Required fields are marked *