PBoC cuts LPR rates

The disappointing rate decline reflects the PBoC’s concern that widening spreads between US and Chinese interest rates will further weaken the RMB and that eroding bank profits by narrowing net interest margins (NIM) will destabilize the financial system. The lower one-year LPR will provide some relief to firms seeing rising real costs of credit due to deflationary producer prices…
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PBoC cuts three key interest rates

10-15 basis point rate cuts will do little to boost the economy, even if authorities make another couple of cuts before year end. That said, since upstream deflation has pushed up the real cost of borrowing for firms, even small LPR cuts will be welcome relief for struggling businesses…
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