SHANGHAI, March 16 (Reuters) - China’s central bank raised interest rates on its standing lending facility (SLF) short-term loans on Thursday, two sources with direct knowledge of the matter said.
The increase came after the People’s Bank of China raised rates on reverse repos and medium-term lending facility (MLF) loans earlier on Thursday, in what economists said was a bid to stave off capital outflows and keep the yuan currency stable after U.S. rates were hiked overnight.
The interest rate for overnight SLF loans will be raised by 20 basis points (bps) to 3.30 percent. Rates for 7-day and one-month loans will be increased by 10 bps each to 3.45 percent and 3.80 percent, respectively, sources said.
Reporting by Shanghai Newsroom; Editing by Kim Coghill