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PBOC May Cut MLF Rate In Q2 - Analyst

CHINA PRESS
MNI (Singapore)

The People’s Bank of China will likely cut the rate of the medium-term lending facility by 10-20 bps in Q2, despite keeping the rate unchanged last week, said Wang Qing, chief macro analyst at Golden Credit Rating. Cutting the MLF and deposit rate remains highly necessary. Pressure on the net-interest margin of commercial banks has increased after the 5-year Loan Prime Rate was lowered by 25 bps, while the PBOC held the anchor MLF in February, said Ming Ming, chief economist at CITIC Securities. Analysts also expect the LPR to remain steady in March. (Source: Securities Daily)

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