Fed Rate Hike May Not Bind China's Monetary Easing Options

The US Federal Reserve raised interest rates for the first time since 2023 on Wednesday, increasing the benchmark target range by 0.25 percentage points to between 3.75 and 4 per cent.

This move has led some analysts to suggest that China's central bank may still push ahead with rate cuts this year to shore up domestic growth.

However, Shao Yu, chief economist at the Sci-tech Innovation Centre at Fudan University's School of Management, believes that the Fed's move has not 'significantly' narrowed China's room for easing.