China is cautious on rates this time notwithstanding Fed lift

China is cautious on rates this time notwithstanding Fed lift

On Thursday, China's major financial institution left interest rates for open market operations intact, shrugging off an overnight soar in the Fed’s key policy rate.

The People's Bank of China didn’t provide comments on its rationale for keeping rates intact, after it followed a Fed lift within hours in March.

However, the Chinese Yuan is currently on steadier footing, while domestic liquidity conditions happen to be relatively tight.

Financial markets had been divided as for whether the PBOC would lift short-term rates once again in lockstep with the major US bank. By the way, China's short-term money rates along with bond yields have already been ascending.

Market participants pointed out that in June liquidity turns to be traditionally tight, and they still remember a cash crunch in 2013, which sent money rates up and shocked global markets.

The Chinese Yuan has ascended 2.3% so far this year, having dropped 6.5% last year.

Similar

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera