China Follows Fed in Tightening, Though Makes Smaller Moves
- Rates on reverse repos, MLF facility raised by 5 basis points
- Move signals that policy makers maintain tightening bias: ANZ
This article is for subscribers only.
China’s central bank edged borrowing costs higher after the Federal Reserve’s decision to tighten monetary 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, though making smaller adjustments than the U.S. central bank. China also boosted rates on another policy tool, the standing lending facility, according to two people familiar with the matter, who asked not to be named as they’re not authorized to talk to media.