PBOC: Improving interest rate system is key for deepening market-based reform

The People’s Bank of China (PBOC) is out with a statement on Monday, outlining key measures to deepen market-based interest rates reforms.

Key quotes                                                               

‘Improving China's benchmark interest rate system is key for deepening market-based interest rate reform.”

“Will make interbank repo rates by depository institutions (DR) as a key reference for monetary policy adjustment and financial market price-setting.”

The Chinese central bank Vice Governor Liu Guoqiang said last week, they would continue to use interest rate reforms to further lower the borrowing costs for companies and clarified that despite pressures on the banking sector it would not lower the capital adequacy ratio requirements for lenders, per China Daily.