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China'S Central Bank Unexpectedly Raised Interest Rates By &Nbsp; Australian Dollar Plunged Two Cents.

2010/10/20 9:58:00 56

China unexpectedly announced 19 days up

interest rate

It has caused great waves in the global financial market.

Worries about the prospects for global economic growth have led to soaring risk aversion, high risk assets such as US stocks and gold and crude oil, while hedge assets such as US dollars and US Treasuries have been sought after.

The Australian dollar opened near two cents this morning.

By the time of 7 a. m. Eastern time, the Australian dollar against the US dollar was 96.68 cents, which was much lower than yesterday's closing price of 98.39 cents.

It is reported that the Central Bank of China announced that it raised the benchmark interest rate for Renminbi deposits and loans of financial institutions since 20.

Among them, the one-year deposit benchmark interest rate increased by 0.25 percentage points, from the current 2.25% to 2.50%; the one-year loan benchmark interest rate increased 0.25 percentage points, from the current 5.31% to 5.56%; other benchmark loans interest rates accordingly adjusted accordingly.

This is the first time China has adjusted the benchmark interest rate since the end of 2007 to the end of 2008, when the people's Bank of China lowered interest rates for the five time.

Investors estimate that any slowdown in China's economic growth will take place.

Measures

Both will curb global economic recovery and will cause far-reaching consequences.

Chain reaction

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The move raises interest risk in the market, and investors sell risky assets and seek refuge.

Affected by this, the three major U.S. stock indexes fell across the board, and the drop was close to 2%. Gold, silver and crude oil markets were all low, while the US Treasury bonds and the US dollar were all sought after, and the US bond prices went up all the way, and the US dollar rose all the way.