“The timing of the announcement suggests that the Fed’s policy played a key role in the PBoC’s decision,” Presto Research analysts said in a Wednesday note shared with CoinDesk. “There’s been chatter that what’s holding the PBoC back from being more aggressive in providing monetary stimulus is the risk of it losing efficacy due to capital flight, as CNY’s short-term rate has been below that of the USD since mid-2022.”
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