Why the People’s Bank of China is unlikely to raise interest rates next year

With China’s economic recovery gaining more traction, the market has started to speculate that the central bank will raise interest rates next year. This expectation is already reflected in the interest rates derivatives market where we can see a steepening curve.
Typically, this kind of steepening suggests that a tightening cycle is under way. Given that an interest rate rise is a typical way to tighten monetary policy, how likely is it that the People’s Bank of China will raise interest…

Read the original article at South China Morning Post