Chinese Shibor interbank rate surges on Thursday
Date
6/13/2024 5:22:41 AM
(MENAFN) The Shanghai Interbank Offered Rate (Shibor), a key indicator of China's interbank market borrowing costs, exhibited varied movements in its rates on Thursday. The overnight Shibor rate increased by 4.3 basis points to reach 1.723 percent. Similarly, the seven-day rate saw a rise of 2.1 basis points, settling at 1.817 percent. Meanwhile, the one-month rate edged slightly higher by 0.2 basis points to 1.9 percent. In contrast, the one-year Shibor rate experienced a minor decrease of 0.2 basis points, falling to 2.073 percent.
Shibor serves as a crucial benchmark in China's financial system, reflecting the average interest rates at which banks are willing to lend to each other without any guarantee. The calculation involves an arithmetic average of RMB lending rates provided by 18 commercial banks with robust credit ratings, after excluding the highest and lowest four quotations. This methodology ensures a representative measure of prevailing interbank borrowing costs, influencing broader economic activities and monetary policy decisions within the country.
The fluctuation in Shibor rates highlights the dynamic nature of liquidity conditions and market sentiments among Chinese financial institutions. As Shibor rates adjust, they impact the cost of funds for banks, influencing lending rates across various sectors of the economy. Observers and analysts monitor Shibor closely as an indicator of liquidity conditions and financial market stability in China, reflecting ongoing developments in monetary policy and economic trends.
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