PBOC keeps monetary conditions on even keel

The interest rate spread between China and US benchmark debt expanded to the widest level in two years on Thursday, as the Chinese monetary authority decided not to ease monetary conditions after the US central bank lowered interest rates for the third time this year.

Analysts said the wider spread will make yuan-denominated financial assets more attractive for international investors, however, to some extent, it may also indicate liquidity tightening in the market.

The Federal Reserve voted on Wednesday to cut interest rates for the third time this year but downplayed expectations of additional cuts amid a worldwide economic slowdown and fallout from the continuing US-China trade dispute.