PBOC Still Has Room To Boost Credit - Journal

The People’s Bank of China still has room to lower financing costs in the real economy and quicken the use of structural tools to help promote the steady growth of total credit, China Securities Journal reported citing analysts. The average interest rate of corporate loans was 4.05% at the end of August, the lowest rate on record. Both medium and long-term corporate loans, as well as total credit, are about to increase, the newspaper said citing Zhang Xu, chief fixed income analyst at Everbright Securities. Guiding down the 5-year Loan Prime Rate, which many lenders base mortgage rates on, is the key to a recovery in medium and long-term borrowing by residents, the newspaper said citing analysts.