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Probability for Lower PBOC LPR Substantial: Times

CHINA PRESS
MNI (Beijing)

The PBOC’s benchmark Loan Prime Rate has a significant probability of getting cut, the Securities Times said in a commentary. The central bank has made the signal when it said policies are to be forward-looking and targeted and that it wants to realize the potential of a market-determined loan rate, said the newspaper. Policy loosening and banks’ lower costs of capital will have allowed banks to submit lower LPR bids, serving to reduce companies’ loan costs in place of a policy rate cut, said the newspaper.

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