(Dec 14): China’s central bank unexpectedly raised borrowing costs following the Federal Reserve’s decision to tighten monetary policy.

Hours after the Fed’s quarter percentage-point move, the People’s Bank of China increased the rates it charges in open-market operations and on its medium-term lending facility, though making smaller adjustments than its U.S. peer.

The cost of seven-day and 28-day reverse-repurchase agreements was raised by five basis points. That followed an increase in mid-March. The PBOC skipped the use of 14-day reverse repos Thursday. The cost of funds lent via MLF was also increased by five basis points, with the 1-year rate raised to 3.25%.

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