Headquarters of the People's Bank of China, the central bank, is pictured in Beijing, China September 28, 2018.
Starting on Jan. 1, financial institutions will be prohibited from signing floating-rate loan contracts based on the previous benchmark bank lending rate, the People’s Bank of China said in a statement on its website on Saturday. “The purpose of the step is to make interest rates more market-driven and help lower financing costs,” said Wen Bin, an economist at Minsheng Bank in Beijing.The previous benchmark bank lending rate has been kept steady at 4.35% since October 2015.Analysts expect the central bank to cut the MLF rate by 20-30 basis points in 2020, which could pave the for way for lowering the LPR further.China’s economic growth slowed to 6.
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Yet China is in debt trap themselves...
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