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MNI BRIEF: PBOC To Optimise Rules On Property Market

MNI (Singapore)
(MNI)Beijing

The People’s Bank of China will work with other regulators to optimise previous rules and support house-buying demand, and stabilise lenders’ funding cost in a bid to strengthen their capacity to boost the economy, said Zou Lan, head of the monetary policy department at the PBOC.

“Considering the supply and demand in the property market has been changing, some previous regulations curbing hot market demand need to be optimised at a marginal pace, ” said Zou, noting the financial sector has coordinated other regulators to meet the need of first- and second-home buyers and support health and stable growth of the property market.

In addition, the Bank will continue to implement its targeted policy tools in a bid to ensure house delivery and facilitate house rent, he noted, adding new targeted tools could be introduced for key sectors.

When answering MNI’s question about a recent cut to deposit rates, Zou said the Bank will further work on stabilising lenders’ funding cost since the rise of fixed-term deposits have pressured the commercial banks’ interest margin which has dropped to 1.7%.

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