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Macro Flash Note - Tighter system liquidity pushes interbank interest rates to decade high levels


19 Sep 2022

With abundant liquidity in the banking system, interbank interest rates were around 1.0% (1W tenor) in June and the first half of July. However, interbank interest rates started to increase in the second half of July and hit a decade high, with the 1W tenor near 6% at the beginning of September (according to Bloomberg data).

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