2023 LPR Expected To Be Lowered - 21st Century Business Herald

A cut in loan prime rates (LPR) can be expected in 2023 as authorities try to boost the post-Covid zero economy, according to an editorial in the 21st Century Business Herald. The overall tone of monetary policy will remain “stable” , but an LPR cut would reduce the financing cost of the real economy, the paper said. Structural targeted lending will remain a pillar of “precise and powerful” policy, and the central bank will continue to implement its 16 point plan to support the real estate sector. Authorities will be keen for specific institutions to hand over profits to the Budget Stabilization and Adjustment Fund, thus expanding available funds at the treasury. Infrastructure investment will play an important stabilising role in the economy, and should be supported by appropriate credit funds, the paper said.