China tweaks lending rates after Fed decision

China's central bank tweaked two of its policy rates in what some analysts said was a bid to relieve pressure on the country's currency.

Overnight, the People's Bank of China lifted the interest rate on its reverse rate repurchase agreements by five basis points.

It also increased the price on the longer-term funds it provides to the country's lenders via its Medium-Term Facility by the same amount.

Commenting on the announcement, Julian Evans-Pritchard at Capital Economics said: "Our best guess is that they are doing the minimum possible in order to still be seen as 'following the Fed' with the goal of supporting sentiment on the renminbi, which has weakened during the past 24 hours in response to Fed tightening."