Josh Nobel at the FT’s BeyondBrics blog writes:
Wednesday’s spike puts the rate at 8.85 per cent – the highest level since October 2007, and higher than the most recent spike from January this year.
Here’s the chart.
Bloomberg also caught this story, reporting:
The seven-day repo rate gained 47 basis points, or 0.47 percentage point, to 8.81 percent as of the 4:30 p.m. close in Shanghai, according to a weighted average rate compiled by the National Interbank Funding Center. It touched 8.93 percent, the highest level since October 2007.
The 14-day repo rate declined 125 basis points to 7.34 percent, the biggest drop since Feb. 1. The slump in longer-term rates shows the cash shortage will probably ease from the start of next month
Let’s hope so. Again I ask: Is China’s hard landing already happening? If so, expect growth to slow in places like Germany too as their export machine is increasingly geared to China.