Loan Prime Rate Could Move Lower - Caixin
The benchmark Loan Prime Rate has room to be lowered following the People’s Bank of China’s 25bp cut to banks’ reserve requirement ratio last Friday, Caixin reported citing Sheng Songcheng, former director of the surveys and statistics department at PBOC. The PBOC said in its Q3 monetary policy report that it would promote lower costs of corporate financing and individual borrowing for consumption, which indicated a lower LPR, said Sheng. The relatively small cut to RRR aimed to boost inter-bank liquidity to support sales of government bonds, and to increase banks’ support for real estate developers, Sheng was cited as saying. China’s real estate sector will see a soft landing, though it will take time, Sheng added.