Chinese central bank lifts open market operation tool interest rates

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CHINA’S central bank lifted interest rates of two open market operation tools Thursday after US Fed’s rate hike.

The interest rates of the six-month medium-term lending facility (MLF)  and the one-year MLF were each up by 10 basis points to reach 3.05 percent and 3.2 percent respectively, according to the People’s Bank of China (PBOC).

The seven-day, 14-day and 28-day reverse repo all saw 10 basis points increase in their interest rates, which stood at 2.45 percent, 2.6 percent and 2.75 percent respectively.

U.S. Federal Reserve on Wednesday raised interest rates for the second time in three months.

The MLF and reverse repo interest rates lift is decided by market changes and does not mean China is raising interest rate, the PBOC said in a statement.