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The Death of the Abacus and Why China Raised Rates by 25 Basis Points

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CH-CH-CH-CH-CHANGES
DailyFeed
On Tuesday, the biggest surprise from China was not that Beijing increased interest rates by 25 basis points.

It was that the increase was not a multiple of nine.

Throughout history, China's central bank usually raised rates by 27 basis points.

Until now.

"The reason is that on the abacus, adding multiples of nine was much easier than adding multiples of 10. So the modern People's Bank of China inherited that special character from the old days," Ken Peng, an economist with Citigroup in Beijing, told Reuters.

"But clearly, computers and market participants may prefer rounder numbers."
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