# China, following Fed, lifts short-term rates to steady yuan, battle debt

> China's central bank raised short-term interest rates a day after the Federal Reserve lifted U.S. rates. The move was the third increase in as many months and aimed to stem capital outflows and steady the yuan.

- Date: 2017-03-16 · published 2017-03-16T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/72222-china-following-fed-lifts-short-term-rates-to-steady-yuan-battle-debt
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Tighter Chinese money conditions and a steadier yuan can slow capital flight and support import demand, but higher rates also slow the economy that drives feed demand. The move reduces the chance of a sharp yuan slide.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-12-06 | [China state banks selling dollars for second day to support yuan - sources](https://feedsoft.ai/events/32921-china-state-banks-selling-dollars-for-second-day-to-support-yuan-sources.md) | +0.4% | +0.2% |
| USDCNY | 2021-02-25 | [China Lets Yuan Rise Steadily, Pressuring Exporters](https://feedsoft.ai/events/48867-china-lets-yuan-rise-steadily-pressuring-exporters.md) | +0.2% | +1.0% |
| USDCNY | 2022-08-31 | [China starts to draw the line on the latest yuan drop](https://feedsoft.ai/events/40258-china-starts-to-draw-the-line-on-the-latest-yuan-drop.md) | +0.8% | +4.2% |
| USDCNY | 2023-07-20 | [Exclusive: China's state banks selling dollars offshore to slow yuan declines, sources say](https://feedsoft.ai/events/35258-exclusive-china-s-state-banks-selling-dollars-offshore-to-slow-yuan-declines.md) | -1.0% | +1.0% |
| USDCNY | 2023-07-25 | [China state banks seen selling US dollars to prop up yuan -sources](https://feedsoft.ai/events/35257-china-state-banks-seen-selling-us-dollars-to-prop-up-yuan-sources.md) | -0.6% | +1.4% |

## Sources

- business-standard.com: https://www.business-standard.com/article/reuters/china-following-fed-lifts-short-term-rates-to-steady-yuan-battle-debt-117031600348_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.