PBoC moves to bolster bank lending with asymmetric rates cut

peoples-bank-of-china2

The People's Bank of China (PBoC) unveiled an asymmetric cut in its one-year lending and deposit rates, reducing its key lending rate by 31 basis points to 6% and its deposit rate by 25bp to 3%, effective from July 6. The PBoC said it will also further reduce the lower band of its lending rate from 0.8 times to 0.7 times, but this is not applicable for mortgage rates.

The move surprised most market watchers as the PBoC had already adjusted its floating band for lending and deposit rates, and cut

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: