PBOC raises reverse repo rates following Fed rate hike

China's central bank lifted the reverse repo rates to commercial lenders by 5 basis points on Thursday, following the U.S. Federal Reserve's latest move of increasing its rate.

People's Bank of China conducted a seven-day reverse repo operation worth 10 billion yuan (U.S.$1.58 billion) after the Fed rate hike and said the move is "in line with the market expectations", according to a statement posted on its website.

The move followed the U.S. Federal Reserve's benchmark interest rate rise by 25 basis points on Wednesday. And the central bank said it is "a normal reaction" to the US rate hike.

The decision was the first of its kind after the central government's appointment of Yi Gang as the new governor of the top banking regulator earlier this week.