China c.bank says previous 1-year benchmark...>

CHINA: China c.bank says previous 1-year benchmark lending rate may not be

changed in near term (RTRS)

- China's central bank vice governor Liu Guoqiang said on Tuesday that the

future interest rate policy focus would be on new Loan Prime Rate (LPR) reforms

and that 1-year policy benchmark rates may not be changed in the near term.

- There is room for cuts in both the banks' reserve requirement ratios (RRR) and

lending rates, Liu told a group of reporters after a briefing.

- China switched to a revamped LPR lending benchmark rate on Tuesday for banks

to use when setting rates on new loans, instead of the central bank's existing

benchmark one-year lending rate.

- But China will not scrap the benchmark lending rate for the time being, said

Liu, adding that policymakers still need time to observe effects of LPR reform.

- Link: https://tinyurl.com/y5u3zd6e