China Money Rate Confusion Shows How PBOC Keeps Traders on Edge
- Benchmark money-market rates surge before being corrected
- Difficult to know if spike a mistake or policy move: analyst
The People's Bank Of China (PBOC) headquarters stand at night in the financial district of Beijing, China, on Monday, March 2, 2015. China's yuan fell to the lowest in more than two years, money-market rates dropped and most stocks advanced after the central bank cut benchmark borrowing costs for the second time in three months amid an economic slowdown.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
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The capacity of China’s central bank to surprise markets is so great that, last week, it left investors chewing over whether a data error was a policy signal.