SHANGHAI (Reuters) - China’s central bank raised interest rates on its standing lending facility (SLF) short-term loans by 5 basis points (bps)on Thursday, three sources with direct knowledge of the matter said.
The increase came after the People’s Bank of China raised a key short-term interest rate earlier in the day, following the U.S. Federal Reserve Bank’s move overnight, in a symbolic reminder that Beijing is keeping an eye on global market trends even as it cracks down on financial risks at home.
The interest rate for overnight SLF loans will be raised to 3.40 percent from 3.35 percent. Rates for 7-day and one-month loans also will be increased by 5 bps each to 3.55 percent and 3.90 percent, respectively, sources said.
Reporting by Shanghai Newsroom; Editing by Kim Coghill