Breaking News: PBOC unexpectedly leaves rates unchanged for reverse repos

The People's Bank of China (PBOC) unexpectedly left borrowing costs for interbank loans unchanged on Thursday, despite a 25 basis point Fed rate hike. 

The rate for seven-day reverse repurchase agreements is held unchanged at 2.55 percent, the 14-day tenor at 2.70 percent and the 28-day tenor at 2.85 percent, according to PBOC website. 

Markets were expecting the PBOC to hike rates to keep the spread between the US and Chinese yields from rising, avoiding the risk of sharp depreciation in Yuan exchange rate.

 

 

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