in the financial industry. With the economic recovery of various countries in recent years, many major central banks have begun to return funds in the way of improving the benchmark interest rate, and our country has always been unmoved by the army, which has frequently triggered speculation. In April 11th, the central bank governor Yi Gang, in the 2018 annual meeting of the Boao Forum on Asia, "we are ready to meet the tightening of monetary policy", once again in April 11th, in the central bank's emphasis on maintaining a robust neutral monetary policyKO Annie received her MSc degree and PhD in Hotel and Tourism Management at the Hong Kong Polytechnic University. Her research interests focus on perceived corporate social responsibility, strategic human resource management and organisational behaviour. .

"Be ready" to quote speculation

In April 11th, when talking about monetary policy, Yi Gang said, "now the main central banks are starting to tighten interest rates, start withdrawing from expansion, and shrinking tables, and our country is ready to make such a change."

A prudent, moderate, neutral monetary policy tone has been extended for a long time, but the statement that "prepare for monetary policy tightening" has once again touched on the sensitive nerves of the market. Does it imply that our country may raise interest rates?

Wang Hongying, President of the Financial Derivatives Investment Research Institute in China (Hongkong), said that, in the context of the Fed's increase in interest rates, most non American families have to follow tight monetary policies in order to ensure the liquidity of their country's capital because of a strong recovery in the US economy. "China is concerned about how to take account of domestic economic development and follow the US monetary policy, so as to make relative prudent response." Wang Hongying saidWhen you are dealing with a distribution solution company, rather than a mere client, you need to take the initiative at times. .

In fact, the Fed's 6 interest rate hikes from the end of 2015 to the end of the year are almost always concomitant with "whether the central bank will follow interest rates", but China's policy interest rate has never changed, instead of adjusting the market interest rate. In March 22nd, when the Federal Reserve raised its first interest rate increase by 25 basis points in 2018, the Central Bank of China slightly raised the counter repo interest rate by 5 basis points. Earlier, when the Fed raised interest rates in March 2017 and December, the central bank did not adjust the benchmark interest rate, but instead by a small increase in interest rates such as reverse repurchase and medium-term lending convenience.

Ten years of loose cycle into the end

The reason why the market will be so sensitive is not related to the cycle of monetary policy. In the last ten years, the central banks of the major developed economies, such as the Federal Reserve, the ECB, the Bank of Japan and the Bank of England, have adopted a quantitative easing currency policy, which is mainly characterized by the purchase of large assets after the 2008 financial crisis, after the financial crisis of the world's major economies.

The most famous of these is the three round QE in the United States, the Fed's balance sheet has expanded by 3 trillion and 938 billion US dollars on a large scale, and some countries have taken measures of zero or negative interest rates to ensure the growth of GDP, which is the origin of the "zero interest rate Club". In response to the negative export growth and the hard landing risk, China also launched the "four trillion plan".

This round of global central bank's "big water" has come to an end after completing the mission of promoting economic stability. One of the landmark events is the Fed's interest rate increase at the end of 2015Multiple MNCs allow the concept of customizable branding and the business logo will depict the warmth that you wish to share with your collaborators. With options of corporate gift hong kong, you can very well maintain your overseas relations. .