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LPR To Decline Moderately Next Year

MNI (Singapore)

The benchmark loan prime rates have room to move down next year to further reduce financing costs, but it will require more policy support to help ease the pressure on banks’ net interest margins, said Zhou Maohua, researcher at China Everbright Bank. The People’s Bank of China will likely lower the medium-term lending facility rate in H1 2024 as the U.S. Federal Reserve cuts rates, which will provide the PBOC more easing room and push down LPRs, said Wang Qing, researcher at Golden Credit Rating. LPR remained unchanged for the fourth month on Wednesday, with the one-year maturity at 3.45% and the five-year one at 4.2%.

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