China’s Central Bank Unexpectedly Keeps Medium-Term Policy Rates Unchanged

China’s Central Bank Unexpectedly Keeps Medium-Term Policy Rates Unchanged
A woman walks past the headquarters of China's central bank in Beijing, on Feb. 3, 2020. Jason Lee/Reuters
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SHANGHAI—China’s central bank kept some of its policy rates unchanged in a liquidity operation on Tuesday, dashing expectations for a cut, although investors believe policymakers may resume monetary easing soon to prop up the cooling economy.

The surprise decision comes a day before the U.S. Federal Reserve is expected to deliver its first interest rate hike in three years and analysts say Beijing may want to avoid widening policy divergence for the time being.