Flash: PBoC signals money market volatility could drag on growth - Danske Bank

FXStreet (Barcelona) - Anders Vestergård Fischer, Analyst at Danske Bank notes that in its quarterly monetary policy report released on Saturday, the People's Bank of China (PBOC) signalled that volatility in money-market interest rates will persist and borrowing costs will rise.,

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“This underscores the risk of defaults in the financial system that could weigh on confidence and drag down growth.”

“PBOC's attempts to curb risky lending in the shadow banking sector by draining liquidity from the interbank market have triggered repeated cash crunches that have roiled financial markets, most recently in January.”