The People´s Bank of China has left the one-year loan prime rate at 3.85% as expected.
Also, the central bank kept the five-year loan prime rate at 4.65% as expected.
About the rate decision
If the PBoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CNY. Likewise, if the PBoC has a dovish view on the Chinese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.
This article was originally published by Fxstreet.com. Read the original article here.