The yuan was flat against the dollar on Thursday after an official with the People's Bank of China (PBOC) said the central bank was unlikely to raise either interest rates or banks' reserve requirement ratio. The unnamed central bank official was cited in a report by Shenzhen-based Guosen Securities on Wednesday.
"There is a very small chance for the central bank to raise interest rates or the reserve requirement ratio within the next six months," the brokerage paraphrased the expert as saying. The Chinese central bank fixed the yuan's daily mid-point at 6.8307 versus the dollar on Thursday, up slightly from Wednesday's reference rate of 6.8316. Spot yuan was trading at 6.8308 at midday, barely changed from Wednesday's close of 6.8304.