Mamta Badkar, Business InsiderJune 25, 2013 08:44
While rates appear to have peaked, they remain at elevated levels.
The People's Bank of China watched in silence for several days before injecting a targeted 50 billion yuan into markets last week. This inaction from the PBOC made markets very nervous.
"The cash squeeze is being tolerated by the PBoC as a warning to banks to curtail their aggressive lending practices and reduce risky activities in the shadow banking market," according to Stephen Schwartz and Carrie Liu at BBVA Research.