July 23, 2024 02:17 GMT
PBOC Could Phase Out MLF
CHINA PRESS
MNI (BEIJING)
Metals bulletEM BulletFixed Income BulletsHomepagemarkets-real-timeCommoditiesEnergy BulletsBulletMarketsEmerging Market NewsForeign Exchange Bullets
The PBOC could eventually phase out its medium term lending facility and use the DR series of overnight rates as the main policy tool, according to Wen Bin, chief economist at China Minsheng Bank. The real economy would benefit from improved interest-rate marketisation and transmission mechanism under the new system, Wen added. Looking ahead, the PBOC will continue easing given the need to further boost demand, but banks will require deposit interest-rate cuts to support their net interest margin. (Source: Yicai)
81 words