PBOC keeps short-term rates steady, shrugs off Fed rate cut

Despite the emergency Federal Reserve (Fed) rate cut overnight to tackle the coronavirus outbreak, the People’s Bank of China (PBOC) maintained it short-term borrowing rates steady on Wednesday.

The Chinese central bank skipped open market operations, it said in a statement on the website, leaving reverse repurchase agreements unchanged, per Reuters.

Most analysts said that the PBOC decision was on the expected lines.

Market reaction

The Chinese yuan is seeing some recovery gains vs. the greenback amid PBOC status-quo, with USD/CNY now losing 0.38% to trade at 6.9295.

The Chinese stocks are trading broadly flat, although the bias remains tilted to the downside.