ECB Rate Hike in Focus as Oil Tops $100 
Yen Sinks as BOJ Rate Hike Fails to Impress Markets 
Best Gold Stocks to Buy Now: AABB, GOLD, GDX 
BOJ Set to Raise Rates to 1.25% as Inflation Risks Build 
Wall Street Mixed as Treasury Yields Rise After Fed Hike 
Yen Extends Gains as BOJ Rate Hike Bets Rise 
Japanese Yen Retreats as Dollar Rises Ahead of Fed, BOJ Rate Decisions 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Add as a preferred source on Google
The People’s Bank of China (PBoC) is expected to raise its interest rate further by around 20 basis points by the end of this year leading the 7-day reverse repo rate to 2.65 percent, assuming that the United States Federal Reserve will hike by another 50 basis points for the rest of the year.
The rate hike action undertaken by the Federal Open Market Committee (FOMC) in the monetary policy meeting held overnight, triggered PBoC’s move which can also be interpreted as a precautionary move for exchange rate stabilization, ANZ Research reported.
But the main reason is that the PBoC is engineering a monetary policy transmission mechanism in the money market and the central bank needs to catch up with the market anyway. Besides money market rates, the risk of China lifting its benchmark deposit rates has increased.
"The policy backdrop should result in bond yields rising and steepening yield curve," the report said.
