LPR Less Likely To Be Lowered: Shanghai Securities News

China's loan interest rate has limited downward room as the central bank kept the benchmark Loan Prime Rate unchanged for 19 consecutive months on Monday, the Shanghai Securities News reported citing analysts. The PBOC left out wording of "promoting a further reduction in actual loan interest rates" in its Q3 monetary policy report published last week, which may indicate that it is satisfied with the current interest level. That means it may work on facilitating finance channels to reduce financing costs instead of sharply cutting rates, the newspaper said citing Ming Ming, deputy research head of CITIC Securities. Though analyst Wang Qing with Golden Credit Rating said the interest rate of one-year LPR can still be cut by 0.05 to 0.1 percentage point should the central bank implement another RRR cut by the end of this year to encourage banks to boost lending, the newspaper said.