China rate cut may prompt Fed to raise US borrowing costs: Nomura

Singapore

CHINA'S interest rate cut will lead the Federal Reserve to raise borrowing costs in the US this year, according to John Gorman, the head of dollar-denominated debt trading for Asia and the Pacific at Nomura Holdings Inc.

China's policy shift last week will help curb volatility in its markets, removing an obstacle that kept the Fed from acting at its last meeting in September, Mr Gorman said. The US central bank's next policy session is on Oct 27-28.