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PBOC stands pat on rates, fails to follow Fed as usual

The People's Bank of China on Thursday made up our minds to not follow the U.S. Federal Reserve in elevating rates of interest, defying expectancies that the Chinese policy makers would follow their standard pattern and respond with small hikes to Fed moves. The Chinese central bank's choice to stand pat got here as information for May indicated the economy is shedding steam, with readings on retail sales and stuck asset investments both missing forecasts. Hong Kong's Hang Seng Index HSI, -0.97% dropped 1%, while the Shanghai Composite Index SHCOMP, -0.18% slipped 0.2%. The Fed on Wednesday lifted rates of interest for the second time this 12 months and hinted another two hikes may well be at the cards later in 2018.