SHANGHAI (Reuters) - China’s central bank raised interest rates on its standing lending facility (SLF) short-term loans by 5 basis points on Thursday, 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 in the day, just hours after the Federal Reserve raised the U.S. benchmark, as Beijing seeks to prevent destabilizing capital outflows without hurting economic growth.
The interest rate for overnight SLF loans will be raised to 3.35 percent from 3.30 percent. Rates for 7-day and one-month loans will be increased by 5 bps each to 3.50 percent and 3.85 percent, respectively, sources said.
Reporting by Shanghai Newsroom; Editing by Sam Holmes