The Fed released the Federal Open Market Committee (FOMC) statement from its March meeting and announced that after the December rate hike, the interest rate will remain unchanged.

ANBOUND's research team is of the view that the Fed’s decision to maintain the interest rate is not only in line with the market expectation but also shows that the Fed’s worries on the domestic and global economies are on the rise.

Market generally believes that the probability of a rate hike in the second half of the year is higher.

The expectation on RMB depreciation will be lowered significantly and the pressure on capital outflows and the dwindling forex reserves will be eased accordingly, giving more space to the country’s monetary policy.