The Big Question: Will China Hike Tonight Following The Fed?

One question that's probably worth asking on Wednesday is whether China will hike OMO rates tonight. You're reminded that the PBoC raised rates hours after the March Fed hike, marking a continuation of the effort to squeeze leverage out the country's bloated shadow banking complex. But even as the move was consistent with the effort to rein in speculation, hiking in tandem with the Fed also helps to stave off capital flight by ensuring rate differentials don't compress enough to put downward p