After its first meeting in January, the U.S. Federal Reserve announced that for now, the range for the Fed funds rate will be kept unchanged at between 0.25% and 0.50% and hinted that in the future, the pace of rate hike might be even slower.

ANBOUND's research team points out that in light of the sluggish world economy, the Federal Reserve’s decision to keep the interest rates unchanged will ease the depreciation pressure faced by China and other emerging countries and help reduce the speed of capital outflows.

However, the situation of global economic deflation and capital surplus will remain unchanged.

It is vital that the Chinese economy should stabilize the market expectation and exchange rate expectation within a short period. In fact, stabilization of these expectations alone is already the best outcome.