Yikkessss!!!
With inflation higher than expected in yesterday's report, there is now talk that China could start raising interest rates as soon as April. Government officials are trying to cool the economy and have told several banks to stop lending. Weekly Chinese news magazine is reporting that BOCOM, Minsheng, China Merchants and Everbright are among the banks that have been told to halt loan originations. If China begins a swift interest rate hiking cycle, expect to see pressure on AUD, CAD and NZD.
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