Lisa: My View over Interest Rate Hikes

本文为Lisa Jiang对这次升息所谈体会,此处独家发表。

Impact on the market

It’s a quick response for the long-time rumor. Therefore, the psychological effect is larger than it’s actual impact.

Impact on different industries

The most beneficiaries from interest rate rearrange is banking, it leaves larger room for competition.

It seems that policy alleviates properties and auto finances. That is absolutely true, while I suppose it helps to rearrange the interest rate structure and adjust the economy as a whole. And the impact on properties or auto are limited and would be in a short term. Since there are other effects that strongly, if not to larger extent, influence the above industries. Landing policies and the overall financial environment play a serious rule on properties, and the competitors overseas brings about unprecedented pressure over the market.

To the fund companies like the one I am in, it’s tougher for us since the investors would invest in the increasing treasuries instead of our Money Market products for the sake of higher safety. More seriously, we would encounter a larger redemption for the same reason.


Moreover, the interest rate hikes provides the government attitude towards ‘soft-landing’. Three approaches of monetary policies : open market purchase, reserve rate inter banks and interest rate. PBOC stick to the former two approaches for over nine years, however, the most effective one would the latter, with an adjustment over construction, like this time. Hence, considering the interest rate increases in the U.S., we would expect a ‘ growing interest rate session’ over the following year,

In conclusion I’m afraid to say that your mortgage may burden you further.

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