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PBOC May Keep Policy Rates Stable in H2: Yicai

CHINA PRESS
MNI (Singapore)

The People's Bank of China may keep its policy interest rates, including the rate of MLF, stable in H2 to manage the market's inflation expectations, Yicai.com reported citing analysts. After cutting banks' required reserve ratios last week, the PBOC renewed the maturing MLFs on Thursday without changing the rate, signaling it is keeping a prudent monetary policy stance and not attempting to loosen, the newspaper said citing analysts. Still, the RRR cut may lead to 5 bps drop in LPR to be announced by the PBOC on July 20, the newspaper cited analysts as saying.

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