PBOC Raises Borrowing Costs

The video discusses the normal market reaction to US monetary tightening and its implications for deleveraging and monetary policy. It highlights central bank actions, particularly the PBSC's efforts to align its rates with global trends. The video also covers the PBC's recent minor rate adjustments to maintain stability and prevent capital outflows, emphasizing the need to keep borrowing costs in line with global developments.

What were the concerns regarding outflows mentioned in the text?

Why is it important for the central bank to keep borrowing costs in line with the rest of the world?