Around the Spring Festival or the Chinese central bank will raise interest rates

 China's central bank announced on Friday again raised the deposit reserve ratio, the Chinese stock market crashed on Monday, down nearly 3% and long bond yields was ascribed. Organization, analysts said the central bank will not rule out the element of surprise around the Spring Festival, or to stress the deposit interest rate increase precision.

China's central bank on Friday (14) that once again raised the deposit reserve rate, the domestic stock market on Monday (17) crashed down nearly 3%. With China's rate hike is expected to heat up, was ascribed to the long bond yields, but then increases to narrow.

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Bank analysts pointed out that the loose liquidity and inflation situation is grim, the central bank will not rule out around the Spring Festival surprise keep interest rates or re-tune precision. Expected volatility index will test a low, short-term support in the 2650-2700 point range for the real estate and financial sector under pressure.

investment bank Goldman Sachs research report that China raised the deposit reserve ratio again shows the position of monetary tightening is expected in the next few months will continue to use the package of policy instruments to curb inflation, including window guidance directly , further raising the deposit reserve rate (the difference between reserves), and increased interest rates.

Shenyin the latest report is that, despite the reserve rate to 19% of the high, but the future may continue to rise, and is expected to more than 20%, in addition, may also hike around the Spring Festival .

China announced late on Friday, from Thursday (20) from financial institutions raised the deposit reserve ratio by 0.5 percentage points. This is the central bank since the seventh time since the early 2010 raised the deposit reserve ratio.

analysts pointed out that excessive credit and the beginning of an increasing inflationary pressures are forcing the Chinese central bank had earlier shot, the rate hike is expected to further strengthen, the central bank will not rule out the unexpected around the Spring Festival rate hikes.

Essence Securities, said the latest report, according to the latest data on trends in the domestic CPI in January was likely to rise again to 5% level, before the Chinese New Year does not exclude the possibility of rate hikes, further tightening of monetary policy risk worth noting.

China this Thursday (20) economic data released last year. According to renowned international financial media survey, expected to last December's CPI will be the third consecutive month to keep more than 4%.

Huarong Securities strategist Fangui Long said that once raised the deposit reserve rate on the limited impact on market liquidity, banks have the ability to hedge, but the continuous increase registration and deposit interest rates, may lead to market The cumulative risk. In addition, the market is expected to remain high inflation in January, the stock market to do more to suppress enthusiasm.