Is China is loosening credit again?

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Throughout much of this year, China has tightened credit conditions in its quest for structural adjustment. Rates in interbank markets have all steadily risen since March. In repo markets:

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And SHIBOR:

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But since mid July that has reversed, in tandem with renewed strength in the yuan:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.