The post China holds rates steady hours after Fed cut despite slowdown appeared on BitcoinEthereumNews.com.

China’s central bank kept its main policy rate unchanged on Thursday, just hours after the U.S. Federal Reserve slashed its own. The People’s Bank of China (PBOC) chose to hold the seven-day reverse repo rate at 1.40%, resisting pressure to ease despite signs of a slowdown in the economy. This came as the central bank injected 487 billion yuan, about $68.56 billion, into the banking system through open market operations. The reverse repo rate now acts as the country’s key benchmark for short-term liquidity. Chinese officials appear to be holding off on more aggressive stimulus even though growth has been cooling. Instead of responding to the Fed’s move with a similar cut, Beijing is banking on strong exports and a stock rally to hold the line … for now. Exports hold up as stock rally raises fears of overheating The decision to hold the rate steady comes at a time when analysts expected further easing. But Hui Shan, chief China economist at Goldman Sachs, said the downturn wasn’t as bad as forecasted. “Although the economy is slowing as expected, the magnitude of the deceleration appears not as big as we assumed,” Hui said. She also pointed out that August activity and feedback from businesses suggested that China’s exports remain surprisingly strong. She added that some of the stimulus planned for this year might now be pushed into 2026. Stock performance is also shaping the central bank’s thinking. The Shanghai Composite Index has been climbing and is now trading near its highest level in a decade. That rally has sparked concerns among economists about the risks of fueling a bubble. Ting Lu, chief China economist at Nomura, warned that large-scale stimulus could push stocks into dangerous territory. However, Ting said the PBOC might consider a modest 10-basis-point cut in the coming…

---

Filed under: News - @ September 18, 2025 8:26 am