China hikes rates, loosens currency markets

The People's Bank of China raised interest rates for the fourth time in a year on 18 May and widened the yuan's daily trading limit against the dollar.

The PBoC, who announced the shift after markets closed, also directed banks to increase their reserve holdings, reducing the amount of money available for lending. The rate on a commercial one-year loan rose 0.18% to 6.57% and the one-year deposit rate was increased to 3.06% from 2.79%.

Additionally, the yuan will now be able to move as much as