More rate action from the PBOC
Citing sources via Reuters. The PBOC have been tinkering with various rates since the Fed hiked last night.
Earlier they hiked the 7 day reverse repo by 5bp to 2.50%, 1yr MLF rate by 5bp to 3.25% and injected 288bn yuan via the 1yr MLF. They said;
- The upward adjustment of interest rates reflects supply and demand in the market
- Rate rise is a normal market reaction to Fed’s rate increase