BEIJING, March 16 China's central bank raised
money market rates slightly on Thursday, but said the increase
did not indicate a change in its monetary policy.
The People's Bank of China (PBOC) increased key money market
rates and rates on its medium-term lending facility (MLF) loans
by 10 basis points on Thursday, its third increase in short-term
rates in as many months.
The bank said the rate increase was market-driven,
reflecting changes in supply and demand for capital at home and
The PBOC said the upward movement in short-term rates does
not constitute a benchmark interest rate hike and that
flexibility in rates is favourable for deleveraging, "deflating
bubbles", and risk prevention.
The U.S. Federal Reserve on Wednesday lifted its target
overnight interest rate by 25 basis points to a range of 0.75
percent to 1.00 percent.
(Reporting by Stella Qiu and Beijing Monitoring Desk; Writing
by Elias Glenn; Editing by Kim Coghill)