PBOC stays on hold after Fed rate cut

The People’s Bank of China (PBOC) has skipped open market operations, keeping the seven-day borrowing cost unchanged at 2.55% a day after the US Federal Reserve (Fed) cut interest rates by 25 basis points. 

The PBOC hasn’t mirrored the Fed move since early 2008. The central bank last cut rates in 2015. 

Economists expect the PBOC to lower the cost of the 7-day reverse repo by the end of September, according to Bloomberg.