PBOC Official: Will deepen Loan Prime Rate reforms to make deposit rates more market-driven

Commenting on the monetary policy path for 2021, a People’s Bank of China (PBOC) official said Wednesday that the central bank will deepen Loan Prime Rate (LPR) reforms to make deposit rates more market-driven.

Additional comments

“Will flexibly adjust the intensity, pace, focus of monetary policy in 2021 based on economic performance.”

“Will maintain the interest rate at an appropriate level, macro leverage ratio basically stable. “

“Will avoid flood-like stimulus in 2021, while maintaining necessary support to economic recovery.“

“Will use monetary policies tools including Reserve Requirement Ratio (RRR), re-lending, medium-term lending (MLF) and open market operations (OMOs) to keep liquidity reasonably ample.”

“Will push forward reforms of money markets benchmark interest rates.“

more to come ...