It was said that the Bank of China (BOC) helped keep U.S. mortgage rates relatively low in 2003-2007. Explain in as much detail as possible each step in the process that starts with BOC intervention in the foreign exchange markets and ends with U.S. mortgage rates being lower than they would have been without the BOC actions.

Answer rating: 100% (QA)

How BOC intervention in the foreign exchange markets helped to keep US mortgage rates relatively low in 20032007 1 The Bank of China BOC intervened in the foreign exchange markets by buying large quan... View the full answer