last month, after the central bank announced that it would raise the benchmark one-year deposit and loan interest rate of financial institutions by 0.25 percentage points, the announcement of the first interest rate increase in 2011 opened the prelude to further tightening the monetary policy of the Central Bank of China.
according to the relevant media, after the latest data showed that the scale of foreign capital inflow increased significantly in January, China may raise the reserve requirement ratio in the near future to ease liquidity pressure. Financial institutions added 501.6 billion yuan in foreign exchange in January, up from 403.3 billion yuan in December, according to data from the central bank on Wednesday. Since January 2009, China has raised the deposit reserve ratio eight times, a cumulative increase of 4 percentage points, in order to recover excess liquidity and curb inflation
on Friday, the media quoted unnamed sources as saying that the new loans of China’s banking industry in February were less than 600 billion yuan (91.3 billion US dollars), far lower than the 1.04 trillion yuan in January. According to the report, the decline in the scale of new loans in February shows that a series of tightening measures taken by the people’s Bank of China have exerted the power to curb the expansion of domestic credit
it can be imagined that the tightening cycle of monetary policy will continue, and interest rate increases will come again, which worries the small and medium-sized foreign trade enterprises that have just recovered from the financial crisis
the increase of loan interest rate is undoubtedly bad news for the majority of shoe enterprises. 1ndustry insiders believe that the continuous interest rate increase will increase the cost pressure of foreign trade shoe enterprises and reduce the profit margin. However, the effect of interest rate increase is gradual. At present, shoe enterprises should seize the time to open up business channels, develop new customers and shorten the capital chain. 1n the long run, it is imperative for traditional foreign trade shoe enterprises to transform into comprehensive foreign trade enterprises
the rising labor costs and raw material prices have made many foreign trade enterprises walk on thin ice, while the tightening of monetary policy and the increase of loan interest rate mean more difficulties for small and medium-sized enterprises. Continuous interest rate increase will increase the cost of enterprise loans, increase the interest and other financial expenses, and then increase the operating costs. On the other hand, the interest rate increase will further promote the appreciation of RMB
MA Guangyuan, a researcher at the 1nstitute of venture capital at Peking University, pointed out that after the financial crisis, the foundation for the recovery of many small and medium-sized enterprises in China is still not solid. 1f credit is excessively contracted, the small and medium-sized enterprises will bear the brunt