China Puts Monetary Easing on Hold With Fed Set to Hike
- PBOC refrains from adding funds, keeps policy rate unchanged
- Policy divergence with the Fed has put pressure on yuan
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China’s central bank abstained from cutting a key policy interest rate, avoiding further policy divergence from the US that could add pressure on the yuan.
The People’s Bank of China kept the rate on its one-year medium-term lending facility at 2.85% on Wednesday, in line with most forecasts in a Bloomberg survey of economists. The PBOC also rolled over the 200 billion yuan ($29.7 billion) of maturing MLF loans.