BEIJING, March 16 (Reuters) - China’s central bank raised money market rates slightly on Thursday, but said the increase did not indicate a change in its monetary policy.
The People’s Bank of China (PBOC) increased key money market rates and rates on its medium-term lending facility (MLF) loans by 10 basis points on Thursday, its third increase in short-term rates in as many months.
The bank said the rate increase was market-driven, reflecting changes in supply and demand for capital at home and abroad.
The PBOC said the upward movement in short-term rates does not constitute a benchmark interest rate hike and that flexibility in rates is favourable for deleveraging, “deflating bubbles”, and risk prevention.
The U.S. Federal Reserve on Wednesday lifted its target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent.
Reporting by Stella Qiu and Beijing Monitoring Desk; Writing by Elias Glenn; Editing by Kim Coghill