PBOC Reduces Lending Costs while Keeping LPR Unchanged: Daily

Chinese business loan rates are likely to further decline in Q4 as regulators press lenders to reduce margins by as much as CNY1.5 trillion this year to support the recovery, the Economic Information Daily reported on Tuesday citing Wen Bin, a researcher from CMBC. The PBOC has meanwhile kept the LPR unchanged for the fifth month, but employed targeted monetary policies such as OMOs and MLFs to maintain liquidity in the banking system, the Daily said. China won't add to its easing policies due to concerns of excess liquidity in the real estate sector, the Daily cited Wang Qing, a macro-analyst from Golden Credit Rating. RRR cuts and MLF adjustments in Q4 are still possible to aid the recovery and help banks ease pressure from the reduction of structured deposits, CMBC's Wen told the Daily.