China's Market Interest Rates Are at Reasonable Level, PBOC Vice-Chief Says
Tang Shihua
/SOURCE : yicai
China's Market Interest Rates Are at Reasonable Level, PBOC Vice-Chief Says

(Yicai  Global) Aug. 20 -- China's current market rates stand at a reasonable  level, according to the deputy governor of the nation's central bank. 

China  is the only major world economy that still applies a conventional  monetary policy because the central bank does not need to buy government  debt and interest rates are far from the level of zero, Liu Guoqiang told Yicai Global at a press conference today.

Chinese  financial institutions' reserve requirement ratio still has certain  room to be cut but that space is not as large as some market players may  expect, said Sun Guofeng, monetary policy bureau director at the  People's Bank of China.

 The PBOC's usual monetary policy tools include  setting benchmark interest rates and RRRs to control liquidity.

Editor: Emmi Laine

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Keywords: Monetary Policy , Deposit Reserve Ratio , Interest Rate , PBOC