Photo: wikimedia commons
Today’s surprise Chinese rate hike threw a big ol’ monkey wrench into the markets today, as it sent the dollar soaring and gold plunging.But here’s what’s interesting: Reuters (via @fttilt) points out that the PBOC has abandoned its tradition of rate movements based on increments of 0.27. The tradition was based on what was easiest to count on the abacus.
What’s the signal here? We’ve arrived; we know the impact of our moves, and we’re ready to be a serious global financial player. Enough with the past.