China stands pat on rates despite Fed action

Shanghai

CHINA'S central bank left interest rates for open market operations unchanged on Thursday, shrugging off an overnight increase in the US Federal Reserve's key policy rate.

The People's Bank of China (PBOC) did not explain its rationale for keeping rates unchanged, after it followed a Fed hike within hours in March.

But the yuan is on steadier footing now, while domestic liquidity conditions are similarly tight.

Markets had been divided over whether the PBOC would raise short-term rates again in lockstep with the Fed, with those in the "hold" camp noting that C…