China's Real Interest Rates Unlikely to Fall Significantly - Herald

China’s real interest rates should not be significantly reduced in the short term as they are below the potential economic growth rate and any large reduction could cause unwanted side effects, the 21st Century Business Herald reported citing an unnamed state-owned bank bond trader. The central bank’s Monetary Policy Department said in an article on Tuesday that the country’s deposit and loan interest rates, which are slightly lower than the potential growth rate, are viewed as being at a reasonable level that provides room for policy changes. The real interest rate after deducting inflation is around 1-3% compared to expected GDP growth of 3-4% this year and a 5% potential economic growth rate, the newspaper said citing Wu Chaoming, vice president of Chasing Institute.