China Tells

Due to an earlier than expected increase in the price level (See Graph from Chinatells), China’s real interest rate starts to show a downtrend move. The central bank has increased the reserve ratio twice in February, but keep the base rate unchanged. With the real interest rate going further down the fixed income sector presents a good opportunity for potential upsides.

由于央行基准利率保持不变，同时物价水平有所上升，中国的实际利率开始出现下降趋势。央行在2月份两次提高准备金率以降低市场过热风险并且发出可能收紧的信号。但是何时提高基准利率还是一个未知数。