Business News

CCTV Script 17/03/17

This is the script of CNBC's news report for China's CCTV on March 17, Friday.

On Wednesday, Janet Yellen, chair of the U.S. Federal Reserve, took another step towards closing the chapter on crisis-era monetary policy, now targeting an interst rate of 0.75 to 1 percent.

This was the Fed's third rate hike since the financial crisis.

Will other central banks follow the trend?

Overnight, the Bank of England held its key interest rate steady -- at 0.25%, the lowest level in history.

However, BOE signaled that an increase may not be far off, with one official dissenting in favor of a higher rate.

The relatively hawkish tone led to a stronger sterling overnight against the greenback, which remained weak after the Fed meeting on Wednesday.

Then, Bank of Japan also had its montary policy meeting yesterday.

The BOJ remained committed to its ultra-loose monetary policy, leaving its deposit interest rate at minus 0.1 per cent, and said it would continue the same amount of bond purchases.

But one central bank is moving with the Fed - the PBOC.

China's central bank raised money market rates soon after the Fed moved.

[BRETT MCGONEGAL , Capital Link International CEO] "It's certainly a reaction ... if that's the case."

Stocks worldwide have been reacting positively for the move of the Fed.

That's because on one hand, markets were well-prepared for the upcoming hike.

On the other hand, the Fed's rate is still low when compared with historical levels.

Rates one day might get high enough to hurt the economy expansion as well as stock markets, but that might take quite a while.

CNBC's Qian Chen, reporting from Singapore.