China central bank improved deposit/credit rate means a lot

August 19,Saturday,CB improved it's rate a stock market spare time,they want to deduce the influence to the capital market into smallest today,the represented index dashed 23 as opening cannot reject the pull from the rate up we check the policy carefully,we will find that the long term rates improved more than the short term rates there are no real market rate shaped in China,so government should help to produce another one which they feel perfectionist's,without the market system arranging the economic resources,there wouldn't be a efficient result.
The high rate also can lure foreign money into China,it would add some pressure to the CPI.Because of China's forex policy,every cent into China will call equivalent RMB counterpart.The more RMB,the higher CPI,as to basic economics principle.
Due to USA stopped improving the Fed rate,China's improved action directly caused today's forign exchage rate wildly flutuated.