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Central Bank secondary effects of pranayama

Central Bank secondary effects of pranayama

December 26, 2010 Chinese banks decided to raise benchmark lending interest rate of RMB. One-year benchmark deposit and lending rates were revised up by 0.25%, various other benchmark lending and deposit rates also made some adjustments to

the rise in mortgage rates, indicating that domestic conditions and environment has changed. This change not only for borrowing costs rising exponentially, banking deleveraging of financial leverage, and the availability of funds for commercial banks will become more and more difficult. In recent years, China's real estate market was fueled by commercial banks, the real estate bubble by bank credit is inflating. As long as the Bank's risk mitigation, property speculators not only afraid to enter the housing market speculation was unable to enter the market. In this case, as long as the speculators out of domestic property market as a whole will change greatly, the housing market will amount to a price drop in sales.

for current home loan interest rate rise change the pattern appears, there is concern that mortgage rates overall increases will affect some buyers of consumer demand, and accidentally called the "rigid demands". But don't forget that on the premise of high prices in the housing market has been a speculation-driven market. At the market, influenced by the limited capacity to pay or housing purchasing power of individuals, personal real estate since demand is very limited (Academy of statistics are faced with the high prices 85% user does not have the ability to buy). Now that the market is essentially speculative housing market, the mortgage raised the benchmark interest rate will accidentally called "rigid requirement"? Instead, it will be the user's demand for purchase of housing the Gospel. Because, as the credit market conditions change, the speculation out of the market, then the House prices return to normal is inevitable. When prices return to normal, on housing really needs to have the ability to enter the housing market.

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