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People's Bank of China Raises Borrowing Costs in Step With Fed

  • PBOC says no need to over-interpret the monetary tools action
  • Synchronization needed as China can’t always use capital curbs
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PBOC Raises Borrowing Costs to Follow Fed

Bloomberg News
Updated on

China’s central bank raised borrowing costs as a stable economy and factory reflation give it scope to follow the Federal Reserve in tightening policy.

Hours after the Fed’s quarter percentage-point move, the People’s Bank of China increased the rates it charges in open-market operations and on its medium-term lending facility.