Yuan under pressure from Fed rate hike
BEIJING: A potential US interest rate hike in December will have limited impact on the yuan, People’s Bank of China (PBOC) chief economist Ma Jun told reporters yesterday.
Ma said the yuan was under depreciation pressure ahead of the expected Federal Reserve rate hike, but may recover when rates are actually raised.
The yuan has remained stable against a currency basket in October despite falling against the dollar.
Recent city-based property control measures in China will cool prices and demand for mortgages, Ma said, adding that the PBOC will consider the possible impact of monetary policy on the property sector.
Ma also said that China’s economy should grow about 6.7% in 2016. – Reuters