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LPR Could Diverge From MLF

CHINA PRESS

China’s Loan Prime Rate may be lowered in July without a corresponding change to the medium-term lending facility as policymakers improve LPR quotations to reflect market interest rates and economic conditions better, according to Wang Qing, chief macro analyst at Golden Credit Ratings. Wen Bin, chief economist at Minsheng Bank, expects authorities to implement deposit interest rate reductions to protect banks’ net interest margins should the LPR be lowered. (Source: Securities Daily)

MNI Beijing Bureau | lewis.porylo@marketnews.com

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