China raises open-market interest rates

- AFP, SHANGHAI

Feb 4, 2017-

China’s central bank on Friday raised two key interest rates for the first time since 2013 in a monetary tightening as liquidity concerns ease following the Chinese New Year cash crunch. Analysts said the move indicated the People’s Bank of China was likely to actively tweak monetary policy this year as it seeks to maintain stable economic growth while preventing asset bubbles. The bank raised the interest rate for the seven-day repurchase agreement to 2.35 percent from the previous 2.25 percent, a statement on its website showed. The longer 14- and 28-day repo rates were also hiked by 10 basis points. They are all key tools used by the central bank to adjust monetary policy. It marked the first increases for the two shorter contracts since 2013 and the first for the 28-day contracts since 2015, Bloomberg News reported.

Published: 04-02-2017 08:58

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