Citing Ming Ming, the Deputy Head of the Research Department of Citic Securities, China Securities Journal reported that the People’s Bank of China (PBOC) is expected to slash the Loan Prime Rate (LPR), the market-oriented loan price basis launched last year, later this month.
The Chinese central bank kept the benchmark rate unchanged for the last three months.
“Lowering borrowing costs for companies has become more important this year and this requires further cuts to the LPR.”
“The PBOC needs to cut money market policy rates or cut reserve ratios to drive banks to report lowered rates.”
“More easing from the central bank was still likely in Q3.”
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