(Reuters) - A researcher at China’s central bank said expectations that the U.S. Federal Reserve would raise interest rates next month was to blame for the recent global market volatility, the official Xinhua news agency reported on Tuesday.
Yao Yudong, head of the financial research institution of the People’s Bank of China, was quoted as saying the expected September U.S. rate hike had been the “trigger” for the market swings.
Asian, European and U.S. stocks plunged on Monday on growing fears of a China-led global economic slowdown. Most markets rebounded on Tuesday after the PBOC cut interest rates.
The U.S. central bank, eyeing an improving domestic economy, could raise short term interest rates from near zero as soon as a policy meeting in mid-September, though the volatility may delay the Fed’s plan.
Reporting by Jonathan Spicer