What impact does the central bank's interest rate hike have on the national economy (import and export inflation)?
The central bank raises interest rates-banks raise interest rates-RMB appreciates-1. Curb inflation and cause deflation /2. Less convertible RMB with foreign currency-high export price (that is, high external cost)-low competitiveness. The equivalent RMB convertible foreign currency rises-the purchase price of imported enterprises falls (that is, the internal cost falls)-the profit rises.