MNI Press Digest Feb 22: LPR, Tarriffs, Inflation

The following lists highlights from Chinese press reports on Monday:

• The PBOC decision to leave the loan prime rates unchanged this month showed its intention to support economic recovery through "consistent, stable and sustainable" policies, the Financial News, owned by the central bank, said in a report. On Saturday, the PBOC kept the interbank loan benchmarks unchanged for the 10th month, with 1-Y LPR at 3.85% and 5-Y 4.65%, in line with market expectations, the newspaper said. While the PBOC soaked up some liquidity last week, market rates are largely in line with the central policy benchmarks, the newspaper said citing analyst Wen Bin of Minsheng Bank.
• China Foreign Minister Wang Yi on Monday urged the U.S. to abandon what he called unreasonable tariffs on Chinese products, remove sanctions on Chinese companies and scientific and educational institutions and stop "unreasonable suppression" of China's technological progress, Global Times reported. In a statement posted on the ministry's website, Wang said the phone call between the two countries' Presidents in early February was a bilateral development welcomed by the world.
• China should anticipate imported inflation as other countries implement monetary easing to bolster their pandemic-hit economies, said the Economic Information Daily in a front-page commentary. Inflation expectations have also contributed to the fast appreciation of digital currencies such as Bitcoin, the Daily said. Large liquidity flowing into the virtual economy renders policies less effective and increases asset bubbles and financial risks, the Daily said.
• China on Sunday laid out an annual policy document on agricultural development, vowing to promote grain production, rural governance and environmental conservation, China Daily reported. China aims to maintain grain output this year at 650 million metric tons while cutting use of chemicals, and stresses protecting its 120 million hectares of arable land from other uses, the newspaper said. China also seeks to cut use of fertilizers and pesticides. China removed the last rural counties from its poverty list last year, a key part of the goal of building a more prosperous society.