China Puts Monetary Easing on Hold With Fed Set to Hike Rates

From bnnbloomberg.ca

China’s central bank abstained from cutting a key policy interest rate, avoiding further policy divergence from the US that could add pressure on the yuan. The People’s Bank of China kept the rate on its one-year medium-term lending facility at 2.85% on Wednesday. Sixteen of the 22 surveyed by Bloomberg had predicted no change, while the rest saw a reduction of either five or 10 basis points. The decision came hours before US officials may consider a hike of as much as 75 basis points, the biggest interest-rate increase since 1994. Policy divergence from the US has wiped out China’s yield premium over US ... (full story)