PBOC Unlikely to Hike Policy Rates Soon: Journal

The PBOC is unlikely to raise policy interest rates in the short term as it eases gradually as the economy continues to recover, the China Securities Journal reported citing analysts. The need to raise OMO rates is not strong as growth hasn't returned to its full potential and the yuan has been appreciating, the newspaper said citing Li Yishuang, analyst at Cinda Securities. The central bank may first withdraw preferential policies such as deferred repayments on maturing loans, and liquidity conditions have returned to normal with little room for further tightening, the newspaper said citing Zhou Guannan, analyst at Huachuang Securities.