PBOC raises rates in open market operations

The People's Bank of China (PBOC) has raised one-year marginal lending facility (MLF) interest rate by 5 basis points to 3.25 percent. The central bank says the rate rise is a normal market reaction to Fed's rate increase. 

Key quotes (source LiveSquawk)

Raises rate on 28-day MLF loans to 2.8 percent.

Raises rate on 7-day MFL loans to 2.5 percent. 

Expects over CNY 1 trillion of fiscal expenditure in Dec.

Will release around CNY 300 billion of funds after previously announced targeted RRR cut takes effect. 

Interest rate adjustment was less than market expectations. 

The rate rise will help keep financial institutions from over-leveraging and expanding credit, will help control macro leverage ratio.