Connect with us
menu

Popular World News

China to rely on reforms to lower real interest rates, cabinet says By Reuters

G20 heads to stop short of denouncing protectionism in communique: Nikkei

ECONOMIC NEWS

China to rely on reforms to lower real interest rates, cabinet says By Reuters

[ad_1]

China to rely on reforms to lower real interest rates, cabinet says

BEIJING (Reuters) – China will rely on market-based reform measures to help lower real interest rates for companies, unveiling some plans to help banks improve loan pricing, state television quoted the cabinet as saying on Friday.

China will reform and improve the loan prime rate (LPR) regime to help banks price their loans, adding five-year and longer tenors to the existing one-year tenor, the cabinet said.

It will allow banks to set rates on loans based on the rates of the central bank’s open market operations, the State Council was quoted as saying after a regular meeting.

The national interbank funding center will calculate and publish a key reference rate for banks, the cabinet said.

The reforms will help “significantly lower real interest rates and resolve difficulties in financing and high financing costs”, it added.

It will ensure the average funding costs for small companies fall by 1 percentage point this year, it said.

The central bank has pledged to gradually unify two interest rate “tracks” – its market-based rates developed in recent years and its benchmark bank deposit and lending rates.

In July, central bank head Yi Gang said China would keep its benchmark deposit rate for a relatively long time, but would phase out its benchmark lending rate in the push to unify the benchmark lending rate and market-based rates.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



[ad_2]

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in ECONOMIC NEWS

To Top
error: Content is protected !!
Top