PBOC hikes OMO rates, says don’t over-interpret actions

The People’s Bank of China (PBOC) raised rates for reverse repos at 7-14-28 days and stressed the upward movement in the Marginal Lending Facility (MLF) and Open Market Operations (OMO) is not an interest rate hike.

PBOC conducted 6-month MFL at 3.5% and 12-month at 3.2%.

The central banks cautioned against over-interpreting the actions and said the hike is market driven and not a change in the monetary policy.