(MENAFN) On Monday, the overnight Shanghai Interbank Offered Rate (Shibor), which serves as an indicator of borrowing costs in China's interbank market, saw a slight uptick of 1.7 basis points, reaching 1.823 percent. This increase reflects the prevailing conditions in the financial market, where lending rates experienced some upward pressure.
Similarly, the seven-day rate witnessed a more significant rise, climbing by 12.9 basis points to 2.08 percent. This suggests a tightening of liquidity in the interbank market over the short term, potentially influenced by factors such as changes in central bank policies or market demand for funds.
Meanwhile, the one-month rate also edged higher, with an increase of 1.2 basis points to 1.962 percent. Similarly, the one-year rate experienced a modest uptick of 2.5 basis points, reaching 2.112 percent. These movements in longer-term borrowing costs may reflect broader economic trends and expectations for future interest rate movements.
Shibor, a key benchmark for interbank lending in China, is calculated by averaging all interbank Renminbi (RMB) lending rates provided by a group of 18 commercial banks with high credit ratings. Notably, this calculation excludes the four highest and four lowest quotations, aiming to provide a representative measure of prevailing interbank borrowing costs. This wholesale interest rate provides insights into the liquidity and borrowing conditions in China's financial markets, influencing lending and investment decisions by financial institutions and businesses alike.
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