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Loan Prime Rate Cut Needed Next Year - China Securities Journal

CHINA PRESS
MNI (BEIJING)

Experts believe China’s loan prime rates need to be cut next year despite quotations remaining unchanged in December, according to the China Securities Journal. The paper said it is necessary to boost demand by guiding the over-5-year LPR lower, thereby reducing the burden on housing expenditure and enterprise financing costs, as well as promoting the steady recovery of the economy. A lower rate on the Medium-term Lending Facility will allow banks to cut deposit rates, which would ease their funding cost pressures and provide the room to cut the LPR, the paper said.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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