1. LINE

      Text:AAAPrint
      Economy

      Impact of Fed rate hike on China seen as limited

      1
      2017-06-15 14:37CGTN Editor: Li Yan ECNS App Download

      The Federal Reserve on Wednesday raised interest rates for the second time in three months, citing its confidence in a growing U.S. economy and strengthening job market.

      The U.S. central bank has lifted its benchmark lending rate by a quarter percentage point to a target range of 1.00 percent to 1.25 percent, with another hike expected this year.

      Yellen: "It reflects the progress the economy has made."

      Explaining the interest hike, Fed Chair Janet Yellen said it signals the "progress" in the economy, which appears to have "rebounded" after slowing in the first three months of 2017.

      A pick-up in global growth is helping U.S. exporters, she said, adding that the job market will probably strengthen further.

      On inflation, she credits one-off factors for the recent slowdown in inflation.

      And the Fed continues to expect gradual increases in borrowing costs will be needed to keep inflation close to target, while sustaining the economic expansion.

      Outline of balance sheet shrinking released

      In another sign of confidence, the Fed outlined its plan to start selling off some of the assets bought during its stimulus program during and after the 2007-2009 financial crisis and economic recession.

      Yellen confirmed that the Fed will take a cautious approach, initially selling six billion U.S. dollars of Treasury bonds and four billion U.S. dollars of mortgage-backed securities a month.

      This cap, which is expected to begin later this year and rise every quarter, will avoid any "market strains", she added.

      Wall Street steady after rate hike decision announced

      U.S. stocks were little changed after the central bank announced the widely expected decision to raise the benchmark interest rate.

      The Dow Jones industrial average ended about 45 points higher, up 0.22 percent, while the S&P 500 slipped 0.1 percent, and the Nasdaq declined 0.41 percent.

      Chinese market react mixed as analysts say impact is limited

      The Chinese stock market opened mixed on Thursday, following the Fed's interest rate move.

      The benchmark Shanghai Composite Index opened low, down 0.16 percent but later rebounded, 0.11 percent lower at 3,127.19 as of Thursday noon. The smaller Shenzhen Component index opened 0.11 percent lower and hiked to 0.42 percent higher at 10,162.09 by noon.

      Short-term volatility could be expected in the Chinese market, analyst believe, but the long-term impact will be quite limited.

      Zhao Qingming, chief economist at China Financial Futures Exchange Research Institute, said the impact of the Fed's rate hike on China can be ignored.

      The Hong Kong Monetary Authority raised its base rate by 0.25 percentage points to 1.5 percent on Thursday morning following the U.S. move.

      The HKMA, Hong Kong's de facto central bank, is obliged to follow U.S. interest rates as Hong Kong's currency is pegged to the U.S. dollar.

        

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 国产嫩草影院精品免费网址| 免费一本色道久久一区| 亚洲国产精品综合久久网络| 亚洲中文字幕无码亚洲成A人片| 久久国产色AV免费观看| 日产亚洲一区二区三区| 久久一本岛在免费线观看2020| 久久精品亚洲综合专区| 亚洲视频免费在线播放| 亚洲欧洲日本国产| 在线观看免费人成视频色9| 亚洲精品无码成人| 国产成人无码区免费A∨视频网站 国产成人涩涩涩视频在线观看免费 | 亚洲精品私拍国产福利在线| 国产在线观看免费视频软件| 国产亚洲3p无码一区二区| 欧洲精品99毛片免费高清观看| 亚洲资源在线观看| 欧洲乱码伦视频免费| 97se亚洲国产综合自在线| 日本一线a视频免费观看| 免费夜色污私人影院网站电影 | 啦啦啦手机完整免费高清观看| 亚洲av无码无线在线观看| 亚洲国产精品成人一区| 中文字幕免费在线看线人动作大片| 国产亚洲成av人片在线观看| 16女性下面无遮挡免费| 久久久久久亚洲精品无码| 国产成人亚洲精品影院| 131美女爱做免费毛片| 亚洲日韩久久综合中文字幕| 亚洲天堂免费在线视频| 999久久久免费精品播放| 33333在线亚洲| 亚洲伊人久久精品影院| 色se01短视频永久免费| 一级免费黄色大片| 亚洲成av人片不卡无码| 亚洲第一页日韩专区| 久久黄色免费网站|