PBOC raises interest rates following US Fed hike

The People’s Bank of China raised open market operations (OMO) and medium-term lending (MLF) rates by 10 basis points on Thursday, after the US Federal Reserve raised its benchmark interest rate by a quarter of a percentage point to a range between 0.75% and 1%, Caixin reports.  The monetary authority attributed the hike in policy rates to better-than-expected economic data in January and February. After the hikes, the 7-day, 14-day and 28-day reverse repo rates were at 2.45%, 2.60% and 2.75%, respectively, and the 6-month and 1-year MLF rates were at 3.05% and 3.2%. The central bank also raised the overnight interest rate of the short-term lending facility (SLF) by 20 basis points to 3.3%, the 7-day SLF rate by 10 basis points to 3.45% and the 1-month SLF rate by 10 basis points to 3.8%.