MNI Press Digest Jan 21: LPR, Deficit, Pompeo Sanctions

The following lists highlights from Chinese press reports on Thursday:

The PBOC may keep the loan prime rate (LPR) unchanged to help solidify reductions in corporate loan rates, the Financial News reported. China's corporate loan rates are likely to be kept low due to low inflation risks and stable macro policies, the newspaper reported citing Wang Qing, an analyst with Golden Credit Rating. The PBOC seems content with the current interest rate levels while leaving the January MLF rate unchanged, while abundant credit and demand should support recovery, the newspaper reported citing Zhou Maohua, an analyst from China Everbright Bank.

China should keep its deficit at a relatively high level in 2021 and the scale of local government special bonds at around CNY3.75 trillion to buttress against lingering uncertainties, the Economic Information Daily reported citing Yang Zhiyong, a deputy director of the National Academy of Economic Strategy under the Chinese Academy of Social Sciences. Provincial governments should have clear plans on using the bond proceeds, the newspaper said citing Yang.

The future China-U.S. relationship should be more equal and may include both reciprocity and reciprocal sanctions, the CCP owned Global Times reported citing Li Haidong, a professor from China Foreign Affairs University. China has set the tone for future relations after imposing sanctions on 28 anti-China former U.S. officials including Michael Pompeo, and urged future American politicians to respect China's core values when making and applying policies toward China, said Li. China will not allow these politicians and their associates to rake in benefits from Chinese markets if they enter the private sector, the newspaper reported citing Shen Yi, a professor from Fudan University.