Good signal for the world economy if Fed raises rates – PBOC governor

FXStreet (Mumbai) - The People’s Bank of China (PBOC) governor said today that the interest rate hike in the US is a good sign for the world economy, while stating that the rate differential would not be huge if the US interest rates are to rise.

At the PBOC news conference, the governor said the volatility in the Yuan exchange rate is normal in an open economy. He further added, that though Yuan volatility rose in 2014 due to the choppy global environment, the currency was relatively stable compared with other currencies.